Deutsche Bank posts third quarter loss

Deutsche Bank posted a third-quarter loss, weighed down by an expected 2.3bn euro (£2bn) charge on Deutsche Postbank, and stuck with a cautious outlook for 2011.

By 2011, Germany's flagship lender aims to achieve 10bn euros pre-tax profit at group level.

"While some of the environmental variables are in line with or ahead of our assumptions, others have not yet reached the expected levels, particularly with respect to the normalization of interest rates," the bank said.

Although Deutsche Bank had warned in September that it would post a quarterly loss due to weaker sales and trading activity in July and August, it said there had been a "strong rebound" in September.

Revenues in corporate banking and securities – the cash cow of Deutsche Bank's investment bank – eased to 4.2bn euros in the third quarter from 4.4bn in the year-earlier period.

It still accounted for the lion's share of the group's overall revenues of 5bn euros. Without the Postbank charge, Deutsche Bank's revenues were 7.3bn euros.