Deutsche Bank may have to make additional legal provisions if a settlement with U.S. authorities over the sale of residential mortgage-backed securities exceeds $4 billion, according to analysts at JPMorgan Chase.

While a settlement around $2.4 billion "would be taken very positively," a range of $3 billion to $3.5 billion still leaves the German lender room to settle other legal issues, JPMorgan analysts led by Kian Abouhossein wrote in a note on Thursday. An agreement of more than $4 billion "would put questions around capital positions with the need to potentially build additional litigation reserves" such as for money-laundering probes tied to Russia, he wrote.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.