GERMANY’S LARGEST bank is reporting a 45 per cent drop in net income to €661 million in the second quarter of this year compared with €1.2 billion in Q2 2011.
Net revenue dipped from €8.5 billion last year to €8 billion, and the bank said it benefited from foreign exchange rate movements.
Corporate banking and securities revenue fell €451 million to €3.5 billion (down 11 per cent on Q2 2011), while its private and business client revenues were down €138 million to €2.4 billion (down 5 per cent).
The bank said that increased market volatility led to lower brokerage revenues in its investment service “as retail clients continue to show a reluctance to invest”.
Earnings per share also fell, down from €1.24 last year to €0.68.
Deutsche Bank says its liquidity reserves at the end of Q2 were in excess of €200 billion.
“In the second quarter, the Bank’s performance was impacted by a volatile environment,” the bank’s co-CEOs Jürgen Fitschen and Anshu Jain said of the results.
“The European sovereign debt crisis continues to weigh on investor confidence and client activity across the bank.”
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