Deutsche Bank said it expects to report a fall in net income in the first quarter from a year ago, and will set aside a significant amount for potential loan losses when it reports full earnings Wednesday.
It also warned that it could miss its capital target in the future, as a result of Covid-19.
In a prerelease Sunday, the German bank said it expects to report net income of 66 million euros ($71.56 million) for the first quarter of 2020, compared with 201 million euros in the first quarter of 2019.
Revenues are expected to come in at 6.4 billion euros.
The bank also set aside 500 million euros in provisions for credit losses. It’s a figure that is being closely watched by investors this earnings season as banks prepare for the financial impact of the global coronavirus pandemic.
It will give full details of its results on Wednesday as scheduled.
Over the last decade, the embattled lender has faced restructuring, higher competition, litigation charges and lower market share. Deutsche Bank ended 2019 with a full-year net loss of 5.3 billion euros.
Deutsche Bank’s share price has fallen over 25% in the last 12 months.
