Deutsche Bank back in the game
(29 July 2009 – Europe) Second quarter profits for Germany’s biggest bank, Deutsche Bank, shot up 67 percent to EUR 1.1 billion (A$1.9 billion), adding to the proof that investment banks are getting back to returning solid gains in equity trading.
Worldwide, results to the end of June 2009 show that investment banks are getting back into the game of profit making, with Deutsche’s year-to-date income particularly impressive.
For the first six months of 2009, net income for the bank was, at EUR 2.3 billion (A$3.9 billion), more than four times the amount of EUR 504 million recorded in the first six months of 2008.
Deutsche Bank chief executive officer, Josef Ackermann, said that the banking industry and financial markets stabilised in the quarter, propelling a fourfold gain in income due to debt sales and an improvement in equity trading.
The gains come on the back of similar results for other banks globally. Credit Suisse, Goldman Sachs and JPMorgan Chase also generated higher trading income in the past quarter.
Ackermann said that the bank has witnessed stabilisation of the world's banking industry and financial markets. Increased liquidity and lower volatility in financial markets are both supportive for the business and its growth.
The bank’s investment banking unit posted pre-tax profit of EUR 828 million after a loss of EUR 311 million a year earlier. The company's global markets business had debt trading income of EUR 2.6 billion on credit, interest-rate and currency sales. Equity trading generated EUR 903 million in revenue, the most in six quarters, the bank said.
Despite the gains, provisions are still having an impact, with provisions for credit losses of EUR 1.0 billion for the quarter, versus EUR 135 million in the second quarter 2008.
For the first six months of 2009, net income for the bank was, at EUR 2.3 billion (A$3.9 billion), more than four times the amount of EUR 504 million recorded in the first six months of 2008.
Deutsche Bank chief executive officer, Josef Ackermann, said that the banking industry and financial markets stabilised in the quarter, propelling a fourfold gain in income due to debt sales and an improvement in equity trading.
The gains come on the back of similar results for other banks globally. Credit Suisse, Goldman Sachs and JPMorgan Chase also generated higher trading income in the past quarter.
Ackermann said that the bank has witnessed stabilisation of the world's banking industry and financial markets. Increased liquidity and lower volatility in financial markets are both supportive for the business and its growth.
The bank’s investment banking unit posted pre-tax profit of EUR 828 million after a loss of EUR 311 million a year earlier. The company's global markets business had debt trading income of EUR 2.6 billion on credit, interest-rate and currency sales. Equity trading generated EUR 903 million in revenue, the most in six quarters, the bank said.
Despite the gains, provisions are still having an impact, with provisions for credit losses of EUR 1.0 billion for the quarter, versus EUR 135 million in the second quarter 2008.
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