Deutsche Bank AG (DB) has cautioned about its fourth quarter 2010 earnings. The company expects earnings to decrease from the prior-year quarter on the back of acquisition-related costs and restructuring expenses.

In a preliminary guidance issued earlier this week, the company announced that it expects net income of around €600 million ($817 million), compared with € 1.3 billion in the year-ago period. However, the prior-year quarter figure reflects special tax items.

Deutsche Bank expects its total revenue to increase to € 7.4 billion from € 5.5 billion reported in the comparable quarter prior year. However, consolidation of the Deutsche Postbank AG and acquisition-related costs coupled with investments made to restructure its investment banking division pushed up its non-interest expenses to € 6.3 billion from € 4.2 billion reported a year ago.

Deutsche Bank is scheduled to release its detailed fourth-quarter and full-year 2010 results on February 3. The company is in fact the first of the major European banks reporting this month. UBS AG (UBS) is scheduled to report its fourth quarter results on February 8.

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