Deutsche Bank shares plunge after it posts bigger-than-forecast loss

Frankfurt (dpa) - Deutsche Bank shares plunged more than 8 per cent on Thursday after Germany‘s largest bank warned it was facing a bigger-than-forecast loss for last year.Frankfurt-based Deutsche surprised the market late Wednesday by releasing preliminary results showing that it posted a net loss of 6.7 billion euros (7.3 billion dollars) in 2015 - its first full-year loss since 2008.Deutsche‘s new co-chief executive John Cryan described the result in a letter to staff as "sobering."Analysts surveyed by dpa-AFX had expected the bank to report a 5.1-billion-euro loss after doubling its net profit to about 1.7 billion in 2014 compared with 2013.After opening down more than 5 per cent, the fall in Deutsche‘s stock gathered pace as the trading day unfolded on the Frankfurt Stock Market. By late morning trading, the shares had slumped 8.2 per cent to 16.30 euros.The bank expects to report a fourth-quarter net loss of 2.1 billion euros, Cryan said.Cryan told staff that he planned to "make Deutsche Bank simpler and more efficient."This, he said, would be achieved "by reducing the number of products and services we offer, deepening our relationships with the most promising clients and bringing focus to the number of locations in which we operate.""They will also help us to lower the bank‘s risk profile by being prepared to resolve existing regulatory and litigation matters as quickly as possible," he wrote.Cryan, who took up his post in July, has set out a five-year strategy for the bank including cutting costs, exiting several countries and hiving off its retail banking arm, Postbank.Deutsche said its loss reflected the need to set aside funds to help meet the costs of lawsuits around the world and severance pay, as well as a decline in group revenue and the impact on its key investment banking business due to tough market conditions.The bank released the results ahead of the scheduled announcement set down for January 28.