NEW YORK (TheStreet) -- Deutsche Bank (DB) - Get Deutsche Bank AG Report shares are down 3.3% to $31.41 on Wednesday after the German bank posted a quarterly net loss during the third quarter earnings period.
The bank reported a net loss of $122 million, a significant drop from the $68 million profit it reported the year before, due to a recorded income tax charge of $474.9 million related to litigation charges.
The company said that it has 3 billion euro set aside to cover its outstanding legal issues that include the Libor price fixing scandal that rocked the financial world earlier this year, and which could cost the company $1.3 billion in fines.
Net revenue for the quarter was up 1.4% to $10.5 billion despite the bank's legal issues, ahead of analysts expectations of $9.7 billion.
TheStreet Ratings team rates DEUTSCHE BANK AG as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate DEUTSCHE BANK AG (DB) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, deteriorating net income and disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: DB Ratings Report