(21 October 2009 – Global) Germany’s largest bank, Deutsche Bank, announced its third quarter profits more than tripled; an encouraging prospect for peers as the impact of the Lehman Brothers failure fades.The bank has said that preliminary estimates show net profit was €1.4 billion (A$2.26 billion), up from €414 million in the same period one year ago.
The encouraging results were driven largely by a one-off tax effect.
Deutsche Bank shares fell on the Frankfurt stock exchange creating fears the bank might have to raise capital for pending acquisitions.
While 2008 was rocky for the bank, encouragingly, the bank has now recorded three consecutive quarterly net profits of more than €1 billion.
The improving trend also extended to Morgan Stanley who posted a third quarter profit of US$757 million (A$818 million) after three consecutive quarterly losses.
Also, Wells Fargo said its earnings rose to a record US$3.2 billion (A$3.46 billion) as it managed to profit from mortgages and consumer credit despite a weak economy.