Deutsche Bank posts surprise gains

Deutsche Bank posts surprise gains
Photo: DPA
Deutsche Bank, Germany's largest, reported on Tuesday a better-than-expected 68 percent increase in second quarter net profit to €1.1 billion ($1.6 billion dollars).

It said the results reflected a recovery in the capital markets, especially for bonds issued by emerging-market countries, and the investment bank division posted revenues up 84 percent at €5.3 billion.

At the same time, Deutsche Bank said the global economic recession meant it had to increase its bad-loan provisions to €1 billion from the year earlier, which was €135 million.

The group gave no specific forecast for 2009, saying the outcome “depends largely on how the global economy progresses.”

Chief executive Josef Ackermann said the bank was well placed to face the uncertainties ahead. “We have cut costs, reduced balance-sheet risk and reinforced our liquidity and capital position,” he said.

The group’s capital adequacy ratio rose to 11 percent in the second quarter from 10.2 percent in the first.

Ackerman said the banking sector and the global financial markets have shown signs of stabilising.

Noting concerns about the availability of bank loans in German, he said Deutsche Bank was willing to extend credit to help the economy recover.

“We are going to help out clients, just as we have been doing, in this difficult credit environment,” he said.

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