Deutsche Bank posts 2010 net profit of 2.3 billion euros

3rd February 2011, Comments 0 comments

Germany's biggest bank, Deutsche Bank, posted Thursday a sharply lower 2010 net profit, calling it the year one of transition as it added a major retail banking network to core investment bank activities.

Deutsche Bank made a net profit of 2.3 billion euros ($3.2 billion), a statement said, a plunge of 54 percent from the bank's 2009 net profit of five billion euros.

In the fourth quarter of 2010, Deutsche Bank's net profit fell by more than 53 percent to 605 million euros as the bank booked heavy charges resulting from recent acquisitions and restructuring costs.

Analysts polled by Dow Jones Newswires had forecast a fourth-quarter net profit of about 800 million euros.

Deutsche Bank said it would nonetheless propose an unchanged dividend of 75 euro cents per share.

"2010 has been a year of investment and change for Deutsche Bank," chairman Josef Ackermann acknowledged in a statement.

"In the process, while again demonstrating the earnings strength of our core businesses, we greatly improved our global market position and are eminently well placed for further growth," he added.

In its core investment bank unit, Deutsche Bank's net profit gained 31 percent in the fourth quarter to 4.6 billion euros.

Its private clients and asset management division also reported a 31 percent increase in net revenues to 2.8 billion euros.

Deutsche Bank's acquisition of the German Postbank, which has the country's biggest retail banking network, contributed to fourth quarter expenses of 6.3 billion euros meanwhile, the statement said.

Deutsche Bank took a specific charge of 2.3 billion euros in connection with the deal, along with one of 400 million linked to its acquisition of private banks Sal. Oppenheim and BHF.

Deutsche Bank also reaffirmed its 2011 profit target of 10 billion euros and Ackermann said: "Although fully aware of the remaining risks and uncertainties in the overall economic environment we are confident that we can meet" that target.

The bank noted that it had also successfully completed a capital increase worth another 10.2 billion euros.

And it sharply decreased the provisions booked against loan losses, cutting them by 52 percent for the full year to 1.3 billion euros.

© 2011 AFP

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