Deutsche Bank shares fell more than five percent to around 14 euros ($17.5) at the start of trade on Friday and remained at similar levels around midday GMT, helping pull the overall market down by around 1.3 percent.
Earlier, the Frankfurt-based bank had said that its net loss amounted to 512 million euros ($640 million) last year, narrower than the loss of 1.4 billion euros in 2016.
Revenues fell to 26.4 billion euros in 2017 from 30 billion euros the year before.
At a pre-tax level, however, Deutsche Bank was back in the black, notching up a profit of almost 1.3 billion euros, compared with a loss of 810 million euros the previous year.
"Only a charge related to US tax reform at the end of the year meant that we had to post a full-year after-tax loss," chief executive John Cryan said in a statement.
In the fourth quarter, when the tax bill was passed, Deutsche booked a 2.2-billion-euro loss -- wiping out the profits it had eked out in the preceding nine months.
Nevertheless, "we believe we are firmly on the path to producing growth and higher returns with sustained discipline on costs and risks," Cryan said.
Deutsche would have reported profits of around one billion euros for the year had the tax changes not landed in November.
"Obviously, a profit of one billion euros would not have been a satisfactory result... but it would make it easier to see where we really stand," Cryan told journalists at a later press conference.
The poor performance meant the bank boss spent much of his appearance defending a 1.1-billion-euro bonus package destined largely for investment bankers, calling it an "investment" in retaining top talent.
The bank had hoped for a positive bottom line in 2017, after years in the red due to a deep restructuring programme and fines from a string of different legal cases.
While the US lowered corporate taxes late last year, the changes nevertheless represented a short-term hit for Deutsche Bank, as the tax breaks it received for its financial difficulties shrank along with the tax rate.
Warning about the effect earlier this month, Deutsche Bank forecast that it would benefit in the longer term, as its average tax rate around the world would fall to 30 percent from 2018.
- Market headwinds -
The lender blamed the drop in revenues last year on "challenging market conditions", as well as on a string of sell-offs, including its stake in Chinese bank Hua Xia, British insurance company Abbey Life and part of its Polish retail banking business.
Low financial market volatility and muted client activity, as well as "different trading conditions in certain areas" sapped revenue at its corporate and investment banking division, Deutsche Bank said.
It hopes that this year clients will trade more, as the prospect of an increase in interest rates in the eurozone inches closer.
Deutsche Bank also said it moved up in the global rankings of banks advising on mergers and acquisitions, surging into third place between October and December in a league table from data firm Dealogic.
Investment banking co-chief Marcus Schenck acknowledged that 2017 was a bad year, but insisted Deutsche remained ahead of European capital markets competitors.
Meanwhile, its retail banking business was "stable" as growth in loans and investment products made up for continuing pressure from low interest rates.
And the bank's asset management unit reported net inflows of 16 billion euros in 2017, reversing a negative trend the previous year as it prepares for a stock market flotation "in the earliest available window".
Deutsche Bank said it aimed to slash costs by more than 1.6 billion euros this year to around 23 billion -- one billion euros short of target, as some planned sell-offs of business areas have been delayed.