The collapse of the US sub-prime market has hit Deutsche hard, with the organisation announcing a pre-tax loss of $258 million at its City-based investment division during the third quarter of this year.
Deutsche also reported a charge of $3.1 billion during the third quarter which was caused by the sub-prime crisis affecting the global markets.
Josef Ackermann, chief executive at Deutsche Bank, described the three months to the end of September as "extremely turbulent".
However, the bank as a whole did report an improvement in its anticipated performance for the period, despite the problems affecting its investment arm.
Pre-tax earnings across the group were reported to be $2 billion. While this represents a 19 per cent decrease on the same period last year, it is higher than the earnings expected by the company only a few weeks ago.
Mr Ackermann said: "Our 'stable' businesses performed well and we reaped the benefits of some recent investments."
He concluded: "As a result, I am pleased to report that, overall, our businesses turned in a satisfactory result."