Deutsche Bank profits soar in first quarter
Deutsche Bank, Germany's biggest lender, reported soaring first-quarter profits Tuesday, fired by a return to health in its investment banking operations and fewer bad loans.
Net profit totalled 1.8 billion euros (2.4 billion dollars), up from 1.2 billion euros in the year-earlier period and beating analysts' expectations of on average 1.4 billion euros.
Echoing strong results for the first three months of the year from other major banks such as Goldman Sachs, Deutsche said that revenues rocketed almost a quarter or 24 percent to 9.0 billion euros.
The Frankfurt-based lender also said it achieved its second best pretax profit result ever, rising to 2.8 billion euros from 1.8 billion euros in the first quarter of 2009.
"The economic environment clearly stabilized in the first quarter 2010, but is not without some remaining vulnerability. In this environment, Deutsche Bank has once again demonstrated its earnings power," chief executive Josef Ackermann said in a statement.
More than a year after the collapse of Lehman Brothers pushed the global financial system to the brink of collapse, Deutsche said the performance was boosted by a "very good" result in investment banking.
This came despite the fact that as a result of the crisis, Deutsche significantly reduced the number of risky investment bets and cut its trading activities to a "very low level," it added.
It wrote off 241 million euros' worth of loans gone bad, less than a quarter of the 1.0 billion euros expunged from its books in the first three months of 2009.
Deutsche Bank confirmed its full-year outlook for 2011, when it aims to earn a pretax profit of 10 billion euros, but did not give any forecast for the rest of 2010.
The bank's finance chief Stefan Krause told a conference call with analysts that Deutsche's second-quarter performance looked positive, however.
-- Dow Jones Newswires contributed to this report --
© 2010 AFP