Deutsche Bank profits rise for second quarter

28 July 2010

Deutsche Bank reported an increase of nine per cent in profits for the second quarter of 2010 when compared with figures from the same three-month period the previous year.

According to official statistics from the financial institution, net income for the period reached €1.2 billion ($1.5 billion) and up on the €1.1 billion seen during the second quarter in 2009.

However, net revenue for the quarter was down at €7.2 billion compared with €7.9 billion recorded in the same period the previous year.

Dr Josef Ackermann, chairman of the management board, said: "In a quarter which was characterized by increased investor uncertainty and higher market volatility, Deutsche Bank's investment banking business followed the industry-wide trend of weaker profitability.”

Deutsche Bank’s Corporate and Investment Bank saw a dip in revenue from €5.3 billion in 2009 to €4.7 billion in 2010.

“[However], global economic activity is likely to strengthen and the new regulatory framework is finally taking shape. This presents new challenges as well as opportunities. Deutsche Bank considers itself well positioned to continuously [create] sustainable value for its shareholders,” the Deutsche Bank chairman added.

The rise in profits was attributed to a fall in the amount of funds used for credit losses, with the figure dropping to €243 million from the €1 billion used a year ago.

By Jim Ottewill

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