Deutsche Bank confident as trading picks up

Frankfurt : Germany's Deutsche Bank AG said yesterday that improved trading, along with tax benefits in the US, lifted its net earnings to 1.3 billion euros (Dh6.7 billion) in last year's fourth quarter.

The profit compared with a loss of 4.8 billion euros in the final three months of 2008.

Deutsche Bank, Germany's biggest by assets, was buoyed by a 554 million euros gain from tax benefits that arose from a decision to recognise deferred tax assets in the US of some 790 million euros.

Revenue rose to 5.5 billion euros in the fourth quarter.

For the full year, the bank earned 5 billion euros, reversing a loss of 3.9 billion euros in 2008, when earnings were hit hard by the global economic crisis. Revenue nearly doubled to 27.9 billion euros from 13.6 billion euros.

The quarterly and annual results were bolstered by an increase in sales and trading revenues.

They reached 1.3 billion euros in the fourth quarter and totalled 9.8 billion euros for the full year, compared with just 116 million euros in 2008.

Deutsche Bank joined banks such as JPMorgan Chase & Co. and Goldman Sachs Group Inc. in emerging from the global financial crisis with healthy profits, while other banks are still posting losses.

‘Great deal'

"Deutsche Bank achieved a great deal in 2009. We delivered very substantial profitability, while simultaneously reducing risk and balance sheet leverage," chief executive Josef Ackermann said in a statement.

"We used these good results to bolster our capital base, and our capital ratios are stronger than ever."