Thursday, November 01, 2007

Deutsche Bank Earnings Top Expectations

FRANKFURT, nov. 1st— Deutsche Bank avoided the worst of the subprime quagmire that ensnared some other big banks, posting a better-than-expected third-quarter profit Wednesday despite $3.17 billion in write-downs stemming from the loan crisis.

The chief executive, Josef Ackermann, said Germany’s biggest bank had made a good start to the fourth quarter and the bank could still meet its financial goals, and the company’s stock climbed 3.7 percent, to 92.05 euros. Deutsche Bank earned 1.62 billion euros ($2.3 billion), up from 1.24 billion euros in the period a year earlier, and ahead of the 1.4 billion euros ($2 billion) Deutsche Bank had forecast.
Deutsche Bank said net revenue fell 20 percent, to 5.1 billion euros ($7.35 billion), below the 5.56 billion euros ($8 billion) forecast by analysts.
That decline included a 1.56 billion euros ($2.25 billion) write-down of assets on its trading books, including 730 million euros ($1.05 billion) from proprietary trading, the chief financial officer, Anthony di Iorio, said.
The bank also reported other losses, particularly at its corporate and investment banking unit, which was hit by the write-downs, posting a pretax loss of 179 million euros ($257.9 million). Still, the loss was less than the 250 million euros to 350 million euros ($360.2 million to $504.2 million) the bank had originally forecast.
Deutsche Bank’s lending was at a negative 120 million euros ($172.9 million), reflecting 603 million euros ($868.7 million) in write-downs on leveraged loans and loan commitments.
That was offset by revenue from the bank’s role as a merger-and-acquisition adviser, which totaled 269 million euros ($387.6 million) in the quarter, its best ever.
The bank’s asset and wealth management pretax profit rose 45 percent, and its private and business client unit posted a 15 percent gain in pretax profit. Third-quarter profit was also helped by 182 million euros ($262 million) in tax gains and 629 million euros ($906 million) in capital gains.
“The third quarter of 2007 was a period of exceptional turbulence in financial markets,” Mr. Ackermann said in a statement, adding that those challenges still exist. But if markets function at normal levels, he said, “we reaffirm our commitment to delivering on our 2008 financial targets.”
Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)

ICICI Bank

ICICI Bank is India's second-largest bank with total assets of Rs. 3,446.58 billion (US$ 79 billion) at March 31, 2007 and profit after tax of Rs. 31.10 billion for fiscal 2007. ICICI Bank is the most valuable bank in India in terms of market capitalization and is ranked third amongst all the companies listed on the Indian stock exchanges in terms of free float market capitalisation*. The Bank has a network of about 950 branches and 3,300 ATMs in India and presence in 17 countries. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in Singapore, Bahrain, Hong Kong, Sri Lanka and Dubai International Finance Centre and representative offices in the United States, United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established a branch in Belgium.
ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).