Deutsche Bank (DB) Earnings Plummet 69 Percent

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February 3, 2012

New York, February 3 (FinanceEnquiry.com) - Deutsche Bank AG (NYSE: DB) reported a drop of 69 percent in its fourth-quarter earnings mainly due to its investment banking division’s miserable performance as a result of Europe’s debt crisis. Its earnings in the fourth quarter were €186 million ($244.8 million) or 15 European cents a share as against €605 million or 63 European cents a share in the same period a year ago. A tax benefit of €537 million is included in the latest results.

Deutsche Bank reported net income of €4.3 billion for the full year, indicating strong results in the first half, compared to €2.3 billion in 2010. European sovereign-debt crisis has been the cause behind the bank’s fixed-income business performing poorly which includes the trading of sovereign bonds.

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In the fourth quarter, there was a drop of 30 percent in trading revenue from fixed-income, currency and commodities to €1 billion, whereas US peers reported a drop of only 5 percent on average. The 40 percent rise in equity trading, that the bank achieved to excel its U.S. peers, was offset by the extra drop in trading revenue.�The bank expects the outlook for 2012 to remain challenging.

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