U.S. News

Deutsche Bank Profit Rises 30% Driven by Robust Markets

By Reuters

Deutsche Bank became the latest bank to benefit from strong markets on Tuesday when it reported that trading helped it reach a record profit in the first three months of the year.

Germany's biggest listed bank said its net profit rose by almost a third to more than 2.1 billion euros ($2.9 billion) thanks primarily to a bumper trading result.

The profit was well ahead of the almost 1.8 billion euros analysts had expected in a Reuters poll. The Frankfurt-based bank reeled in 3.4 billion euros of revenue from buying and selling debt and other such products -- one fifth higher than a year earlier.

Revenue earned trading shares and such securities rose more than 10% to 1.7 billion euros in the three months.

The record trading made up for skidding profits in its private clients and asset management business, which includes the bank's retail branches in Germany.

Pretax profit in this business slipped 10% to 481 million euros, which the bank put down to investing in markets such as India and integrating recent German acquisitions.

The bank's chief executive, Josef Ackermann, said that with the North American economy "resilient" and growth in Europe solid, Deutsche was well positioned for further profit improvement.

Deutsche's success in trading mirrors that seen recently at Swiss rival Credit Suisse and many U.S. groups including Merrill Lynch .