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27th April 2012

Deutsche Bank profit falls one third

Deutsche Bank reported Q1 net attributable of €1,381m (£1,132m $1,824m ¥148.2bn Y11,499m) DOWN 33%. The main reason for the fall was the drop of €1.3bn in non-interest income. There was a €257m loss booked on the sale of Actavis which contributed to this fall. The bank became the second major European bank to note that Q2 had not started well either.


The bank has announced the sale of parts of its wealth management business to Guggenheim Partners. In the result teleconference it was announced they were seeking to sell other parts of the business. In common with many other European banks they are seeking to boost capital ratios through the reduction of risk weighted assets.


The profit was below expectation and the stock was trading down almost 4% in late afternoon trading Thursday, the day of the announcement.


Q1 income summary 2012 2011 Change
€m €m %
Interest and similar income 8,375 8,369 0.1%
Interest expense 4,182 4,202 -0.5%
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Net interest income 4,193 4,167 0.6%
Provision for credit losses 314 373 -15.8%
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Net interest income after credit provisions 3,879 3,794 2.2%

Commissions and fee income 2,849 3,081 -7.5%
Fair value gains (losses) on financial assets 2,399 2,653 -9.6%
Net gains on financial assets for sale -46 415 --
Net income from equity method investments -149 -32 >
Other income -53 190 --
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Total noninterest income 5,000 6,307 -20.7%

Compensation and benefits 3,656 4,278 -14.5%
General and administrative expenses 3,184 2,737 16.3%
Policyholder benefits and claims 150 65 >
Impairment of intangible assets 10 – --
Restructuring activities – – --
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Total noninterest expenses 7,000 7,080 -1.1%

Income (loss) before income taxes 1,879 3,021 -37.8%
Income tax expense (benefit) 478 891 -46.4%
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Net income 1,401 2,130 -34.2%
Attributable to noncontrolling interests 20 68 -70.6%
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Attributable to Deutsche Bank shareholders 1,381 2,062 -33.0%