Deutsche Bank Posts $673M 3Q Profit
FRANKFURT, Germany (AP) _ Deutsche Bank posted a third-quarter profit of euro576 million ($673 million), reversing year-earlier losses as deductions for the bad loans that have hit big German banks dwindled.
Germany’s largest bank said Thursday that the profit for the three months ended Sept. 30 contrasted with a loss of euro299 million a year ago.
Its bad loan set-asides fell sharply to euro174 million ($203 million) from euro753 million in the third quarter a year ago.
The bank also cut its overhead by more than euro600 million ($700 million) over the period.
The third-quarter figure exceeded the expectations of analysts surveyed by Dow Jones Newswires, who predicted a net profit of euro472 million ($551 million).
The bank’s pretax profit was euro755 million ($881 million) in contrast to a loss of euro181 million in the same quarter last year. The figure was short of analysts’ forecast of euro789 million ($921 million), however.
Germany’s big banks have been hit with bad loans due to a wave of business bankruptcies in the country’s sluggish economy. Deutsche Bank has weathered the problem better than others in part because its international investment banking business makes it less dependent on the German economy.
The latest earnings figure was up slightly from euro572 million earned in the second quarter.
Chief executive Josef Ackermann gave an upbeat full-year outlook, though he provided no specific numbers.
``The solid and sustained year-to-date performance, together with a better global economic environment, gives me and my colleagues great confidence that we can look forward to a full-year 2003 performance which will be very satisfying for our shareholders,″ Ackermann said in a statement.
Deutsche Bank shares were down 2.4 percent at euro56.36 ($65.76) in midmorning trading on the Frankfurt exchange.