Deutsche misses forecasts as new bosses confirmed

DEUTSCHE Bank named two successors to its chief executive Josef Ackermann yesterday but its first-quarter net profit of €1.2bn (£1.1bn) missed market forecasts for €1.3bn.

Germany’s investment banking giant said its head of investment banking Anshu Jain (pictured) and head of regional management Juergen Fitschen would become co-chief executives when Ackermann moves up to become chairman at the end of next year.

But it warned it may miss its targeted €6.4bn full-year pre-tax investment banking profit as Eurozone debt concerns were hurting trading.

“Many flow businesses were adversely impacted by the continued uncertain macro environment, leading to lower volumes,” it said.

Deutsche made €1.8bn pre-tax profit in the quarter, 17 per cent higher than in the same quarter in 2010, as its private banking and commodities arms performed well, but investment banking pre-tax profit rose just one per cent to €1.3bn.

Deutsche cut €155m from the value of its Greek debt holdings and said US and European debt discussions made the outlook uncertain.

“Setbacks across all banking segments cannot be ruled out if governments fail to achieve the expected progress in dealing with their debt problems,” it said.