Deutsche Bank is citing regulator fines as the reason for the significant drop in profit.

The earnings of Deutsche bank fell by half during the first quarter of the year, while this drop has been stronger than expected the company is also having troubles with legal charges that revolve around investment banking revenue. The first quarter net profit has fallen to 559 million Euros (608 million dollars), in spite of the increase in revenue by 24 percent which is has been driven mostly by growth in client trading activity. The revenue of the bank increased to a record breaking 10.4 billion Euros however the pre tax contribution fell by more than 50% due to currency swings, regulatory expenses and litigation, stated the bank’s officials on Sunday.

Deutsche Bank has been able to position itself as the last man standing in Europe when it comes to investment banking, besides the fact that it has made certain cuts in business lines. This strategy of the bank gave results in first quarter revenue, as the profits from its debt trading businesses raised by 9% compared to last year; it also increased profit from its growing equities trading division by 31%. On Friday Deutsche Bank also announced its new strategic plan which includes selling off their Postbank retail chain while cutting back on investment banking. More details are to be released on Monday. Many big trading banks including Deutsche have managed to increase fee income during the first quarter after the scrapping of the franc by the Swiss National Bank. European banking rivals such as Barclays and UBS have taken an axe to trading desks, while Deutsche has decided to keep their dealing divisions. The trading revenue for Deutsche has risen by 20% already in the previous quarter by cashing out declines at Morgan Stanley and Goldman Sachs.

British and United States regulators fined Deutsche bank on Thursday 2.5 billion dollars over attempts to try and manipulate benchmark interest rates. The bank’s officials have stated that neither Anshu Jain, who was the one running the investment bank during the alleged scandal, nor the rest of the management board members were proven to be aware or involved in the trader misconduct. Deutsche Bank has been forced to pay over 9 billion Euros in settlements and fines since 2012, and analysts predict that it will have to pay around 4 billion more during 2015.