Deutsche in profit slump
April 29, 2014
Deutsche Bank announced Tuesday its net profit dropped by no less than 34 percent in the first three months of the year as slower trading of bonds and foreign exchange factors weighed on its business.
Deutsche said it earned 1.10 billion euros ($1.52 billion), compared with 1.66 billion euros in the same period last year.
The Frankfurt-based lender also took over half a million euros in losses from its non-core unit keeping assets intended to be sold or wound down. The write-downs came at a special commodities group that took a huge hit on US power trading due to a price spike amid severe winter weather.
Looking on the bright side
Deutsche Bank said first-quarter revenues dipped by 11 percent to 8.39 billion euros, but Co-Chief Executives Anshu Jain and Jürgen Fitschen noted the latest results were still better than many analysts expected.
"It's a resilient performance, with the bank making progress to strengthen its finances," according to a statement from the bank.
The lender pointed out it had been able to improve its leverage ratio towards the end of the quarter, with 3.2 percent of its total assets now being covered by the bank's core capital.
hg/kpc (Reuters, AP, dpa)