Deutsche Bank posts 47% fall in profits
by Kay Murchie
Deutsche Bank, German’s largest bank, posted a 47% decline in profits for the final quarter of last year after the credit crunch hit earnings at its key investment arm.
In the same period, net profit fell to 954 million euros (£709 million) from 1.84 billion euros compared with 12 months earlier. However, the figures were still ahead of analysts’ forecasts.
Furthermore, the bank did not reveal any further bad US sub-prime debt on top of the 2.2 billion euros announced in October.
The German bank said its only write-downs for the fourth quarter amounted to losses of less than 50 million euros in relation to the funding of unsuccessful takeovers.
Josef Ackermann, Deutsche Bank’s chief executive, said its latest results represented ‘a solid performance in challenging times‘, adding he expects conditions to remain challenging this year.
Last month, the bank announced it was to shed 300 jobs at its global markets arm warning that the slowdown in the worldwide credit markets would cut its earnings growth.
However, analysts said these redundancies were modest compared to other financial institutions such as Citigroup, Bank of America and UBS.
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