Deutsche Bank trading revenues decline
30 July 2004, FRANKFURT - Deutsche Bank Profits were up in the second quarter but not enough to offset a worrying decline in trading revenue, Germany's largest banking house announced Friday.
30 July 2004
FRANKFURT - Deutsche Bank Profits were up in the second quarter but not enough to offset a worrying decline in trading revenue, Germany's largest banking house announced Friday.
Pre-tax profits for the quarter were up by 6.4 percent to EUR 1.16 billion. But analysts had predicted a figure of nearly EUR 1.4 billion.
"Business conditions in the second quarter 2004 were very challenging and this impacted on our revenues," said Deutsche Bank head Josef Ackermann in unveiling the figures.
"But due to the enhanced operating strength of our platform after the transformation, we turned in a solid result. This allowed us to close the first half of 2004 with substantial growth in profitability, and returns to our shareholders," he said.
In explanation, he said provision for loan losses was EUR 155 million, down sharply from 340 million during the same period last year.
In addition, total net revenues were EUR 5.240 billion, down 5.8 percent from 5.565 billion last year. Analysts had predicted those revenues would be down, but only to EUR 5.4 billion.
Net income before reversal of 1999-2000 credits for tax rate changes was EUR 749 million, compared with 588 million for the same period last year.
Taken together with first quarter earnings, this brought net income (before tax reversal) for the first six months of 2004 to EUR 1.7 billion, compared to EUR 399 million in the first half of 2003.
Diluted earnings per share rose by 25 percent to EUR 1.16 in the second quarter, and by 396 percent to EUR 2.83 in the first half of 2004.
Pre-tax return on average active equity for the second quarter rose from 15 percent last year to 18 percent, and, for the first six months, rose from 9 percent to 21 percent.
"The economic environment was impacted by rising interest rates, a cooling of growth rates in some major economies and upward pressure on oil prices amid concerns over security and political stability," Ackermann said.
"We experienced lower levels of activity in the world's capital markets, both debt and equity, while convertible bond markets were particularly difficult," he added.
Subject: German news