Deutsche Bank reports a sharp fall in profits, in part due to weaker performance in investment banking during the eurozone debt crisis.
Net income for the first three months of the year was 1.4 billion Euros ($1.9 billion), down 35% on the 2.1 billion Euros the bank made a year earlier.
Revenue was down 12% at 9.2 billion Euros.
The bank said although the business environment was “more stable” than at the end of last year, it was “far less favorable” than a year earlier.
Germany’s biggest bank also took a 257 million Euro hit after writing off its holding in pharmaceutical company Actavis.
Revenues at the bank’s investment banking division fell 8% to 6.2 billion Euros, while those at the asset management arm dipped 17% to $3.4 billion.
Postbank, Deutsche’s retail arm, also reported lower revenues due to low interest rates and a move to reduce risk across its operations.
“This is a strong result which reflects good performance across most businesses, despite continued risk discipline and lower client activity than in the prior year,” the company said.
Investors, however, appeared to disagree, with Deutsche shares closing down 3.7% in Frankfurt.
The bank said it had focused on consolidating its position and building up its reserves.
“We continue to pursue our strategy of reducing legacy risks and strengthening our capital position, as evidenced by our disposal of Actavis,” said chief executive Josef Ackermann.
Europe’s top banks have been hit hard by the eurozone debt crisis, which has undermined investor confidence and hit trading volumes, which has knocked investment banks’ revenues and, therefore, profits.