Deutsche Bank (NYSE:DB) has alerted its stakeholders to a potential financial setback stemming from a legal challenge related to its acquisition of Postbank in 2010.
During a recent hearing on April 26, 2024, the Higher Regional Court of Cologne signalled it might uphold claims by former Postbank shareholders seeking a higher buyout price.
Although Deutsche Bank has expressed disagreement with the court's preliminary views, it anticipates the necessity of setting aside legal provisions.
These provisions are expected to affect the bank's profitability and capital metrics for the second quarter of 2024, with potential claims totalling approximately 1.3 billion euros.
The bank forecasts that this legal issue could lower its Common Equity Tier 1 (CET1) ratio by 20 basis points to 13.25%, with a leverage ratio recorded at 4.42% as of March 31, 2024.