Deutsche Bank's 5.5% decline follows Postbank's report

Shares of Deutsche Bank dropped by 5.5% during early trading on Monday following reports that Germany's largest lender might face liabilities of up to 1.3 billion euros ($1.39 billion) in a longstanding legal dispute over its acquisition of Postbank.

In a surprise announcement on Friday, Deutsche Bank revealed its intention to allocate funds to cover potential claims related to the lawsuit. Despite maintaining strong disagreement with allegations of underpayment, the bank acknowledged the need for provisions, with the total claims amounting to approximately 1.3 billion euros.

Deutsche Bank, which had recently seen positive momentum with better-than-expected earnings and a significant uptick in its stock price, warned that the provision would impact its financial performance for both the second quarter and the full year.

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