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Deutsche Bank AG (DB) - Get Deutsche Bank AG Report shares extended declines to a two-month low Monday following the bank's late-Friday warning that it will post its third consecutive full year loss, heaping further pressure on CEO John Cryan.

Shares in Germany's biggest lender were marked 1.1% in the opening 90 minutes of trading in Frankfurt, taking their two-day decline past 6% to change hands at a two-month low of €15.30.

The stock has sharply under-performed the Stoxx Europe Banks benchmark since the subindex started its 7-week rally in mid-November off the back of hawkish signals from the European central bank, falling 2.5% against a 5.6% gain. 

The sluggishness reflects increasing speculation that Cryan has lost the support of some of his major investors, including China's HNA Group Co., following an as-yet-unsuccessful strategy revamp in March and a $9 billion capital injection. There have also been reports of a rift between Cryan and chairman Paul Achleitner over the CEO's handling of communications between the bank and HNA Group. 

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Late Friday, the bank said a reduction of the U.S. corporate tax rate to 21% from 35% would force the revaluation of some of the tax credits that sit on its balance sheet and reduce its core capital base about around 10 basis points. 

"The reduction ... is expected to reduce Deutsche Bank Group's effective tax rate on average to the lower end of its previously communicated 30-35% range, based on the current mix of taxable income," the bank said. "The TCJA also introduced the U.S. Base Erosion and Anti-Abuse Tax (BEAT). While Deutsche Bank will require additional detailed analysis in order to assess its impact, and further interpretive guidance and clarifications are anticipated, Deutsche Bank does not currently anticipate any significant long-term impact from BEAT on its tax rate."

It also noted that "low volatility in financial markets and low levels of client activity in key businesses" will likely hit revenues in its fixed income and trading division by around 22% compared to the same period last year.

"Although Deutsche Bank expects to report positive (pre-tax income) for the full year, it expects to report negative IBIT for the fourth quarter before taking into account combined restructuring and severance costs and litigation charges that are currently anticipated to be approximately €500,000 in the quarter."

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