BERLIN, March 20 (Xinhua) -- Deutsche Bank, Europe's largest bank by asset, cut its net income in 2012 by 400 million euros (516 million U.S. dollars) on Wednesday, setting aside additional money as provision for mortgage related lawsuits in the United States.
The bank said in a statement that it had decided to increase the provision for litigation by 600 million euros to 2.4 billion euros. Thus, its net income, which had been previously announced on Jan. 31, was now reduced by 400 million euros to 291 million euros, sharply less than the net profit of 4.326 billion euros in 2011.
According to Deutsche Bank, the adjustment was due to "new developments related to specific existing legal matters" which occured after the previous report, and was required by accounting rules.
The provision was set aside for mortgage related lawsuits in the United States and some other regulatory investigation, said Deutsche Bank.
The bank said its proposed cash dividend in 2012 of 0.75 euros per share remained unchanged.
Deutsche Bank is facing several lawsuits and international probes. In the United States, it is accused of mis-selling billions of risky mortgage debts before the financial crisis. The bank was also under international investigation for its alleged involvement of manipulating the London Interbank Offered Rate, or LIBOR.
Other suspected financial institutes, such as Royal Bank of Scotland, UBS, and Barclay, had agreed to pay millions of dollars to settle the claims. (1 euro = 1.29 U.S. dollars)