Our earnings will be weak Deutsche Bank warns.

Deutsche Bank can't seem to get a break.
A day after prosecutors raided the company's headquarters in a tax evasion investigation, Deutsche Bank cautioned that unexpected costs would be a drag on profit. The cost of overhauling a retail banking unit in Germany, coupled with thedeclining value of some securities, could "have a significant negative impact on the bank's earnings" in the last three months of theyear, the bank said on Thursday.
But Stefan Krause, the bank's chief financial officer, tried to put the outlook in a more positive light. "This is not seen as a profit warning," he said in aconference call with analysts. "This is a guidance."
Mr. Krause also took note ofthe investigation in the call,but did not address the accusations in detail. On Wednesday, Deutsche Bank disclosed that Mr. Krause and Jürgen Fitschen, a co-chief executive of the bank, werethe focus of an investigationover the value-added tax on the trading of carbon emissions certificates. The inquiry resulted in raids byabout 500 police officers, tax inspectors and other officials at the bank's headquarters in Frankfurt, as well as offices and private homes in Düsseldorfand Berlin. The two executives are subjects of the inquiry because they signed tax return documents.
"The criminal investigation is going on, and it is very difficult to predict when that will be over," Mr. Krause said.
The bank is dealing with a difficult environment even without pressure from law enforcement authorities. Like its rivals, Deutsche Bank has been trying to revamp its businesses in theface of a sluggish market and economic weakness. The bank is also moving to reduce risk as new regulations take effect over the next several years. The rules will increase the amount of capital banks must hold against certain kinds of assets.
Deutsche Bank, which is in the midst of closing its books for the year, decidedto update investors on the unanticipated costs. Mr. Krause said the bank did not know the amount of those expenses.
"The outcome is still open,"he said. "But there will be quite a large amount of things to consider, which could be substantial and could lead to a loss."
Some costs relate to an overhaul of Postbank, a Deutsche Bank unit that offers banking services fromGerman post offices. In addition, the bank may need to record losses from debt or other securities thatit owns.