Deutsche Bank posts profit gain

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DeutscheBankLogo1 Deutsche Bank logo.

Frankfurt - Deutsche Bank, Germany's biggest bank, posted a 16-per-cent rise in second-quarter profit Tuesday as its cost-cutting programme bore fruit and income from debt trading rose.

Pretax profit rose to 917 million euros (R13 billion) in the three months to the end of June from 972 million in the same period last year, the Frankfurt-based bank said.

“All our core businesses contributed to this result,” co-chief executives Anshu Jain and Juergen Fitschen said releasing the results.

Income from the bank's key trading debt and foreign exchange business held steady at 1.83 billion euros despite the current low interest rates instituted by central banks around the world.

However, a drop in group revenue combined with a 49-per-cent rise in its tax bill cut into the bank's second-quarter net profit.

Net profit slumped to 237 million euros (318.5 million dollars) compared with 334 million in the same period last year, Deutsche said.

Group revenue dropped 4 per cent to 7.86 billion euros from 8.2 billion euros, the bank said.

Deutsche said the costs of legal action it faced were “unpredictable.”

As a result, it was raising reserves for future litigation to 2.2 billion euros from 1.8 billion in the first quarter.

This follows a series of legal moves against the bank, including for its alleged involvement in the Libor benchmark rate scandal. - Sapa-dpa


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