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Deutsche Bank profit more than triples in Q3

Deutsche Bank profit more than triples in Q3

Deutsche Bank AG, Germany's biggest bank by assets, said Thursday that tax credits and increased trading revenue pushed its third-quarter earnings more than three times higher.
The company made a net profit of ⁈llion ($2.07 billion) in the July-September period compared with ⁈llion a year earlier. The gain was propelled by some ⁈llion in tax benefits.
Revenue rose 64 percent to ⁈llion compared with ⁈llion in the same quarter last year.
The third quarter 2009 results beat expectations on revenue and earnings with analysts polled by Thomson Reuters expecting ⁈llion in net profit and ⁈llion in revenue.
The results were in line with the preliminary figures that Deutsche Bank released earlier this month.
Chief Executive Josef Ackermann said the gains in net profit and revenue were seen across the board and in all of its units.
"In this quarter, we again delivered a solid profit, whilst maintaining balance sheet discipline and further bolstering our capital strength," he said, adding that the bank worked to expand its offerings.
"All our business segments were profitable in the quarter," Ackermann said. "Across our sales and trading platform, we maintained and extended the reductions in balance sheet and risk-weighted assets which reflect our strategic decision to reduce levels of trading risk, even at the expense of short-term revenue gains in some business areas."
Looking forward, he said Deutsche Bank, based in Frankfurt, was prepared to "bolster our long-term competitive position" and said there were challenges and opportunities.
"We are well-prepared for both," he said.
For the nine-month period, Deutsche Bank had a net profit of ⁈llion compared with ⁈llion in 2008. Revenue was ⁈illion compared with nearly ⁈illion.
Third-quarter revenue was helped by Deutsche Bank's reduction of its holding in automaker Daimler AG, which resulted in a ⁈llion gain. That helped offset charges of ⁈llion related to the commercial paper vehicle Ocala Funding LLC and a loss of ⁈llion from changes in credit spreads on its own debt.
Deutsche Bank said its corporate banking and securities revenues more than tripled to ⁈llion for the quarter compared with ⁈llion a year earlier, driven up by revenue in sales and trading.
Revenue in the corporate investments division rose to ⁈llion from ⁈llion in the third quarter of 2008.
The bank's third-quarter sales and trading revenue was ⁈llion, a figure Deutsche said was its best-ever for a third quarter, despite ⁈llion in losses related to write-downs in the structured credit business.
Meanwhile, global transaction banking, asset and wealth management, private clients and asset management and private business clients divisions all saw their revenues increase.
On Wednesday, Deutsche Bank said it would buy Sal.Oppenhiem Group for ⁈llion as part of its efforts to boost its wealth management operations.
Total assets at the end of the quarter were down 20 percent on the year to ⁈llion. They were 20 percent lower on a nine-month basis.
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Updated : 2021-03-06 13:03 GMT+08:00