Deutsche Bank hit by lower trading volumes

City A.M. Reporter
Deutsche Bank's quarterly pre-tax profit missed expectations, hit by lower trading volumes just as the flagship lender named Anshu Jain and Juergen Fitschen co-chief executives.

Germany's biggest lender said that second-quarter pretax profit rose to 17 percent to 1.8bn euros (£890m), compared with a forecast for 1.97bn in a Reuters poll.

While it said it was still confident it could reach its 2011 target of 10bn euros pre-tax profit, it may miss the profit goal for its Corporate Banking & Securities division due to the European debt crisis.

Reaching the aim of 6.4 billion euro 2011 pretax profit in the division would depend on swift and sustained resolution of the European sovereign debt crisis and a return to a significantly improved operating environment in the second half of this year.

Second-quarter net profit remained flat at 1.2 billion euros.

Jain, the 48-year-old Indian-born head of Deutsche Bank's investment bank, will share power with Fitschen, the 62-year-old native German responsible for business in Europe's largest economy, the bank said on Monday.

Deutsche Bank said its core businesses of private clients and asset management and the corporate and investment bank delivered a pretax profit of 5.5bn euros in the first half of 2010.