Reduces provisions for Postbank litigation
Increases forecast for credit loss provisions
Investment bank revenue up
Cologne court rules against Deutsche on Postbank

FRANKFURT, Oct 23 Reuters Deutsche Bank has raised its forecast for bad loans against the backdrop of a weak German economy, as the bank returned to profit in the third quarter, boosted by investment banking and a cut in reserves for Postbank lawsuits.

This marked the second time in the last few months that Germany39;s largest bank has increased its baddebt provision forecasts. The bank39;s shares were 3 lower by midmorning.

It feels the difficult German economic environment has started to impact Deutsche Bank revenues, JPMorgan said in a note.

The International Monetary Fund has just warned that the German economy is expected to stagnate this year, contrasting with expectations for growth in all the other G7 countries.

Deutsche39;s 15quarter profit streak was interrupted in the second quarter after the bank made a large provision for the Postbank lawsuits. Deutsche has since settled some of the cases and cut provisions by 440 million euros 475 million, helping to boost profit.

The bank also said it was applying for a share buyback, a move that was on hold because of its Postbank issues.

Deutsche bank revised up its credit loss provision forecast to 38 basis points of loans in 2024, up from previous guidance of slightly above 30 basis points. That would put fullyear provisions at around 1.8…