Deutsche Bank Announces EUR141mn Loss In Q1

by Ulrika Lomas, Tax-News.com, Brussels

30 April 2008

Deutsche Bank on Tuesday reported a net loss of EUR141mn, or 27 cents per share, for the first quarter of 2008, and a loss before income taxes of EUR254mn.

Markdowns of EUR2.7bn were recorded in respect of leveraged loans and loan commitments, commercial real estate and residential mortgage-backed securities.

A gain of EUR 77mn arose from the widening of credit spreads on certain Deutsche Bank debt, for which the fair value option was elected. The Tier 1 capital ratio at the end of the quarter, reported under Basel II, was 9.2%.

Dr Josef Ackermann, Chairman of the Deutsche Bank Management Board, commented:

"In the first quarter of this year, financial market conditions were the most difficult in recent memory. In the month of March, pressure on the banking sector was more intense than at any time since the current credit downturn began. Inevitably, this left its mark on Deutsche Bank's results. Nevertheless, relative to the environment and the industry, this is a solid performance."

He continued:

"Deutsche Bank's position is clear. We remain rigorous in controlling costs and monitoring investment spending. We are redeploying both human and capital resources towards growth businesses and regions. We are swiftly and decisively reducing our risk exposures. We have consolidated our capital strength."

And concluded by announcing that:

"We re-affirm our strategy and our business model. Our integrated 'one bank' approach has proven its worth and is essential to our success and our ability to create value for our shareholders. We have captured market share in some important areas."

"The fundamental trends shaping our operating environment are unchanged, and Deutsche Bank is very well-positioned to emerge stronger than ever from a recovery in business conditions. We are equally determined to meet near-term challenges, and to take advantage of longer-term opportunities."

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