Deutsche Bank Sees $7 Billion Quarterly Loss on Writedowns

Deutsche Bank AG expects to report a surprise third-quarter loss of 6.2 billion euros ($7 billion) and may eliminate its dividend for the year after writing down the value of its two biggest divisions and boosting its reserve for legal costs.

The estimates, announced in a statement Wednesday, are part of a strategy that co-Chief Executive Officer John Cryan will present Oct. 29 as he looks to shore up capital and boost profitability at Europe’s biggest investment bank. Deutsche Bank’s American depositary receipts tumbled 6.4 percent after the disclosure to $26.96 at 4:22 p.m. in extended trading in New York.