Deutsche Bank today reported results for the second quarter and first half of 2009. Net income for the quarter was EUR 1.1 billion, up 67% versus EUR 645 million in the second quarter 2008. Diluted earnings per share were EUR 1.64, versus EUR 1.27 in the prior year quarter.
- Net revenues of EUR 7.9 billion
- Income before income taxes of EUR 1.3 billion
- Tier 1 capital ratio of 11.0%
- Risk-weighted assets reduced by EUR 21 billion, or 7%, to EUR 295 billion
- Balance sheet reduced by 6% during quarter and by 31% since 30 June 2008 (U.S. GAAP pro-forma)
- Level 3 assets reduced by EUR 16 billion, or 20%, during the quarter
- Leverage ratio, per target definition, further reduced to 24
Income before income taxes was EUR 1.3 billion, up 105% versus EUR 642 million in the prior year quarter. The current quarter result was affected by the absorption of EUR 1.4 billion of specific charges, mainly in noninterest expenses and provision for credit losses, which were in part counterbalanced by EUR 758 million of specific positive revenue effects. Pre-tax return on average active equity, on a reported basis was 15%, and as per the bank's target definition, which excludes significant gains and charges, was 16%.
For the first six months of 2009, net income was EUR 2.3 billion, versus EUR 504 million in the first six months of 2008. Income before income taxes was EUR 3.1 billion, versus EUR 388 million. Pre-tax return on average active equity was 19%, versus 3%, while per the firm's target definition, pre-tax return on average active equity was 20%, versus negative 4%. Diluted earnings per share were EUR 3.53, versus EUR 1.01 in the first six months of 2008.
Dr. Josef Ackermann, Chairman of the Management Board, said: "In conditions which contained both opportunities and challenges, Deutsche Bank turned in very satisfactory results. The outlook for the remainder of 2009 is strongly influenced by progress in the global economy. In an uncertain environment, Deutsche Bank is well prepared. We have taken good advantage of improved conditions on financial markets, but we have also reduced costs and balance sheet risks, and strengthened our capital and liquidity base, all of which leaves us well-placed to confront near-term challenges. Whilst we continue to maintain strict balance sheet discipline, we also remain committed to supporting customers in a difficult credit environment. For private customers of Deutsche Bank branches in Germany, new mortgage lending is up by over 50% since a year ago, and our volume of loans to 'Mittelstand' companies is now around EUR 3 billion higher than at the onset of the crisis in late 2007."
Ackermann added: "We have witnessed stabilization of the world's banking industry and financial markets. Increased liquidity and lower volatility in financial markets are both supportive for our business. Our strategic focus and proven business model, our leading franchises in critical areas, and our financial strength, all position us well to take full advantage of opportunities, as and when business conditions improve."
Source: Deutsche BankDate: 28.07.2009
