Deutsche Bank reports fall in profits amid eurozone debt crisis

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.

Deutsche Bank reports a sharp fall in profits, in part due to weaker performance in investment banking during the eurozone debt crisis

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.

 

Clyde K. Valle

Clyde is a business graduate interested in writing about latest news in politics and business. He enjoys writing and is about to publish his first book. He’s a pet lover and likes to spend time with family. When the time allows he likes to go fishing waiting for the muse to come.

Recent Posts

Spain: At Least 158 Killed In The Country’s Worst Flooding Disaster

At least 158 people have died in Spain's worst flooding disaster in generations. On October…

2 days ago

Russia Fines Google $20,000,000,000,000,000,000,000,000,000,000,000, Surpassing Global GDP

Google has been fined two undecillion (a two followed by 36 zeroes) roubles by a…

2 days ago

Financing Your Home Remodel: 7 Tips for Success

Embarking on a home remodel is an exciting journey, promising enhanced comfort, increased property value,…

2 weeks ago

Donald Trump Serves Up McDonald’s Fries While Kamala Harris Celebrates 60th Birthday with Church Choir

The US presidential candidates continued to campaign across key swing states on October 20. Footage…

2 weeks ago

America PAC: Elon Musk Promises to Award $1M Each Day to Swing States Voters

Elon Musk has said he will give away $1 million a day to a registered…

2 weeks ago

Canada Expels 6 Indian Diplomats Amid Khalistan Row

India and Canada have decided to expel their top envoys along with other diplomats as…

3 weeks ago