Deutsche Bank rebounds with strong 2009 profits

Deutsche Bank rebounds with strong 2009 profits
Photo: DPA
Germany's biggest lender, Deutsche Bank, bounced back last year with a robust net profit of €5 billion following a loss of €3.9 billion in 2008.

In the last three months of the year, Deutsche Bank turned in a profit of €1.3 billion, a statement said, its fourth consecutive quarterly result of more than €1 billion.

The bank posted a massive fourth-quarter loss of €4.8 billion in 2008 as it cut the estimated value of its assets in the midst of the global financial crisis.

Looking ahead to this year, bank chairman Josef Ackermann said: “We see a clear trend to recovery and stabilisation of financial markets although the effects of the recent crisis will take time to work through.”

In the fourth quarter of 2009, Deutsche Bank benefitted from a tax benefit of €554 million, in large part owing to “the recognition of deferred tax assets in the United States,” the statement said.

Meanwhile, the bank more than doubled its provisions against risky loans to €2.6 billion as it braced for a surge in defaults.

The comparable figure in 2008 was €1.1 billion.

The bank’s board nonetheless proposed a sharp increase in its dividend to €0.75 per share for 2009 from €0.50 in 2008.

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