Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Classified Sites

The Canadian Press - ONLINE EDITION

Slower trading of debt, foreign exchange reduce revenues, earnings at Deutsche Bank

FRANKFURT - Deutsche Bank AG said Tuesday that net profit fell 34 per cent in the first quarter as slower trading of bonds and foreign exchange weighed on revenues.

Germany's biggest bank made 1.10 billion euros ($1.52 billion) compared with 1.66 billion euros a year ago. The figure was nevertheless better than the 981 million euros expected by analysts surveyed by financial data provider FactSet, and shares in the bank rose in early trading. Net revenues fell 11 per cent to 8.39 billion euros.

Earnings at the investment banking division fell as the bank saw less demand from clients for trading debt such as bonds. Debt markets have suffered from turbulence in emerging markets and from concerns about the eventual withdrawal of monetary stimulus by the U.S. Federal Reserve and other central banks.

Revenue from foreign exchange trading was significantly lower "due to lower client activity and challenging trading environment."

The bank also had 532 million euros in losses from its non-core unit, where it keeps assets that it intends to sell or wind down. That unit suffered from losses at its special commodities group, which took a 151 million-euro hit on U.S. power trading due to a price spike caused by severe winter weather.

Co-CEOs Anshu Jain and Juergen Fitschen called it "a resilient performance" and said the bank was making progress in strengthening its finances. The bank is shedding risky investments in order to strengthen its capital levels to meet new regulatory requirements aimed at making the global and European banking systems more robust.

Still, the bank's core Tier 1 capital ratio, a key measure of financial strength, slipped to 9.5 per cent during the quarter from 9.7 per cent from the previous quarter, due in part to more rigorous regulations. The bank cautioned that its capital level could fluctuate but that it remained committed to its 10 per cent goal by the end of March 2015.

"The regulatory bar is getting higher," Jain said in a conference call with analysts.

Deutsche Bank shares were 2.2 per cent higher at 32.12 euros in morning trading in Europe.

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.


Make text: Larger | Smaller

Brandon Sun Business Directory
Sudden Surge: Flood of 2014
Opportunity Magazine — The Bakken
Why Not Minot?
Welcome to Winnipeg

Social Media

Canadian Mortgage Rates