Deutsche Bank falls short on weak markets

 
City A.M. Reporter
DEUTSCHE Bank missed profit forecasts in the first quarter as Germany’s biggest bank was hit by one-off charges and weak markets that hurt earnings from trading and asset management.

The group yesterday reported pre-tax profit of €1.9bn (£1.55bn), below the €3bn seen last year and short of analyst forecasts, weighed by litigation charges and an impairment on its investment in drugmaker Actavis.

Outgoing chief executive Josef Ackerman said “financial markets remain cautious as we have seen in April, with investor risk appetite markedly lower”.

Pre-tax profit at the corporate banking and securities division, traditionally Deutsche’s main profit driver, fell more than a quarter to €1.7bn in what the bank described as a difficult environment.

Deutsche said that while overall performance was strong, reflecting increased client activity compared to the second half of 2011, it remains less favourable compared to a year ago. Conditions in the global economy remain challenging, the bank said.

Revenues from debt trading were down eight per cent compared to the first quarter 2011.

Deutsche Bank shares fell more than three per cent yesterday.