Related News

Home » Business » Finance

Bank's Q2 profit surges 67%

DEUTSCHE Bank AG reported yesterday a 67 percent rise in second-quarter net profit due to stronger corporate and investment banking and one-time charges that lowered the year-ago results. Shares slumped, however, due to writedowns and a cautious outlook.

The Frankfurt-based bank said net profit for the April-June period increased to 1.1 billion euros (US$1.6 billion) compared with 45 million euros in the second quarter of 2008.

Revenue for the second quarter rose 46 percent to 7.9 billion euros from 5.4 billion euros in the second quarter of 2008, when revenues were hurt by 2.3 billion euros in writedowns.

Deutsche Bank said it absorbed 1.4 billion euros in charges during the quarter, mainly from provisions for credit losses and noninterest expenses, indicating the financial crisis' effects aren't totally over yet.

The results beat expectations on sales and earnings but some investors took profits on the stock after the report was released. Shares fell 4 percent to 49.75 euros in Frankfurt morning trading yesterday.

Markets focused on the cautious outlook for the rest of the year, which rests on an overall turnaround in the global economy, and the reported writedowns.

"The outlook for the remainder of 2009 is strongly influenced by progress in the global economy," Josef Ackermann, the bank's chief executive said in a statement.

"In an uncertain environment, Deutsche Bank is well prepared. We have taken good advantage of improved conditions on financial markets, but we have also reduced costs and balance sheet risks, and strengthened our capital and liquidity base, all of which leaves us well-placed to confront near-term challenges," Ackermann said.

He added that the bank has witnessed a stabilization of the world's banking industry and financial markets, and that increased liquidity and lower volatility were contributing to its more profitable business performance.

"Over the next few years, we expect the 'flight to quality' to continue, allowing Deutsche Bank to gain share due to their higher credit quality, superior technology and greater international reach," Bernstein Research analysts wrote in a recent note.


Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend