Vegas casino weighs on Deutsche Bank earnings
The biggest German bank, Deutsche Bank, posted strong first-quarter earnings Thursday, but one weak spot was the bank's Las Vegas casino.
Non operational activities, those unrelated to Deutsche Bank's core operations, posted a pre-tax loss of 165 million euros ($245 million), in sharp contrast to a 3.5-billion-euro profit Deutsche Bank made on the rest.
One result of the financial crisis is that the bank is now the owner of The Cosmopolitan, a casino complex in Las Vegas that was inaugurated in December.
Deutsche Bank also now owns Actavis, an Iceland-based maker of generic drugs.
The casino lost money in the first quarter of 2011 even though its early operations were solid, Deutsche Bank finance director Stefan Kraus told a conference with analysts.
"It is normal to suffer a loss in the beginning with an investment of this size," he noted.
According to press reports, the bank invested four billion dollars in The Cosmopolitan, a sprawling complex of slot machines, poker tables and 3,000 hotel rooms.
© 2011 AFP