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Deutsche Bank’s Q4 Profit Drops (DB)

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Deutsche BankDeutsche Bank AG (NYSE: DB) today released its fourth-quarter financial results, posting a 69% drop in profit as its investment banking unit suffered from the euro zone debt crisis.

The Frankfurt, Germany-based bank reported earnings of 186 million euros, or 0.15 European cents per share in the fourth quarter, compared with 605 million euros, or 0.63 European cents per share reported for the same period in the previous year.


For the full year 2011, Deutsche Bank, which is Germany’s largest bank in terms of market capitalization, reported net income of 4.3 billion euros.

Deutsche Bank’s results reflect the problems faced by the bank in the euro zone. The bank’s fixed-income business was hurt by the sovereign debt crisis in the euro zone. Christopher Wheeler, analyst at Mediobanca, said that Deutsche Bank is the sovereign debt market for the euro zone and they dominate that market.

Deutsche Bank’s trading revenue from fixed-income, currency and commodities dropped 30% to 1 billion euros in the fourth quarter of 2011. The sharp decline in FICC trading revenue offset a 40% increase in equity trading at Deutsche Bank.

Josef Ackermann, CEO of Deutsche Bank, said that the outlook for 2012 remains challenging. Ackermann said that 2012 will continue to be difficult for Europe both politically and economically. He warned of a mild recession across the European Union and bigger problems for the struggling southern nations.

Ackermann said that the scale of the economic slowdown in European and the world will largely depend on further progress in solving the sovereign debt crisis in the euro zone. He said that the euro zone debt crisis is and will remain the greatest challenge for the real economy and the financial system.

Deutsche Bank shares are marginally higher in pre-market trading in New York today.

 

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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