FRANKFURT (AP) — Deutsche Bank AG reported Tuesday a 67 percent rise in second-quarter net profit due to stronger corporate and investment banking and one-time charges that lowered the year-ago results. Shares slumped, however, due to write-downs and a cautious outlook.
The Frankfurt-based bank said net profit for the April-June period increased to euro1.1 billion ($1.6 billion) compared with euro645 million in the second quarter of 2008.
Revenues for the second quarter increased 46 percent to euro7.9 billion from euro5.4 billion in the second quarter of 2008, when revenues were hurt by euro2.3 billion in write-downs.
Deutsche Bank said it absorbed euro1.4 billion in charges during the quarter, mainly from provisions for credit losses and noninterest expenses, indicating the financial crisis' effects aren't totally over yet.
The results beat expectations on sales and earnings but some investors took profits on the stock after the report was released. Shares fell 4 percent to euro49.75 in Frankfurt morning trading.
Markets focused on the cautious outlook for the rest of the year, which rests on an overall turnaround in the global economy, and the reported writedowns.
"The outlook for the remainder of 2009 is strongly influenced by progress in the global economy," Josef Ackermann, the bank's chief executive said in a statement.
"In an uncertain environment, Deutsche Bank is well prepared. We have taken good advantage of improved conditions on financial markets, but we have also reduced costs and balance sheet risks, and strengthened our capital and liquidity base, all of which leaves us well-placed to confront near-term challenges," Ackermann said.
Ackermann added that the company has witnessed a stabilization of the world's banking industry and financial markets, and that increased liquidity and lower volatility were contributing to the bank's more profitable business performance.
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