Deutsche Bank 'expects profit'

2 July 2008

Deutsche Bank will register positive net income over the April-June period, the firm has indicated.

In a statement yesterday, the Frankfurt-based bank also indicated that it would not need to launch a rights issue in order to shore up its balance sheet.

This is because its Tier 1 capital ratio is predicted to remain at nine per cent across the three months - which keeps it at the upper end of its target range.

"The bank does not expect its financial performance in the second quarter to result in a requirement for further capital," the statement continued.

News of the likely profit follows the disappointing results declared by Deutsche Bank for the first quarter of 2008, in which the firm suffered its first three-month loss in five years.

At the bank's annual general meeting in May, however, chief executive Josef Ackermann said that he expected "strong results" in the future - despite the possibility of "shocks" such as another credit crunch.

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