| Deutsche Bank posts loss of 1.2 billion euros in third quarter |
| Date: 2010/10/29 Click: 1525 |
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Deutsche Bank, Germany's largest bank, confirmed Wednesday a third-quarter net loss linked to its purchase of Deutsche Postbank AG but the underlying operating profits remained stable for the period.
Deutsche Bank reported a net loss of 1.21 billion euros (1.66 billion U.S. dollars) in the quarter with an expected payment of 2. 3 billion euros on Postbank as it increased its ownership. Excluding the charge, net profit for the quarter was 1.1 billion euros .
Deutsche Bank began to increase its stake in Postbank, Germany' s largest retail bank, since 2008, with the goal of enhancing its retail-banking operations and diversifying its mostly investment- banking-driven revenues.
Deutsche Bank said sales and trading revenue at the investment bank slipped merely 4 percent, less than other major competitors, due to foreign exchange and a September rebound in client activity. Earnings before tax at the corporate banking and securities unit rose 12 percent to 1.1 billion euros,
Deutsche Bank showed strong growth in its global transaction, revenue of which increased 29 percent to 852 million euros, suggesting that recent acquisitions to diversify away from its core investment banking revenue were paying off.
Revenue from asset and wealth management was up nearly 30 percent to 1 billion euros including 200 million euros in revenue contributed by private bank Sal Oppenheim, acquired by Deutsche Bank in March. Pretax profit reached 78 million euros.
Earnings at the retail-banking unit rose 64 percent to 245 million euros in the third quarter, the highest result since the collapse of Lehman Brothers Holdings Inc. in September 2008. Deutsche Bank's Tier 1 Capital ratio fell to 11.5 percent at the end of the third quarter from 11.3 percent at the end of June, but it was down from 11.7 percent a year earlier.
"The third quarter results again prove the robustness of our business model despite the difficult ongoing macro-economic and market conditions." Deutsche Bank chairman Josef Ackerman said.
Chief Financial Officer Stefan Krause said that the bank doesn' t expect any further adjustments to its costs related to Postbank. |
