Apr 30, 2008
The first German bank Deutsche Bank (Xetra: 514000 - news) has reassured Thursday in announcing 2007 results better than expected and now in the wake its 2008 targets, despite the risks to the crisis in mortgages risk to the USA.
Last year, its net profit hit a new record, to 6.5 billion euros, an increase of 7% over a year. His taxable income, which serves as a yardstick to the bank to its estimates, has increased by 5% to 8.7 billion.
Unlike many of its rivals, the Frankfurt institution has managed to remain relatively immune to the crisis mortgages at risk Americans.
After having had to spend impairment of assets of 2.2 billion euros in the third quarter, they remain "less than 50 million euros" in the fourth quarter, according to a news release.
None are directly related to mortgages at risk American ( "subprime"), said Deutsche Bank. It is structured credits that have suffered from the turmoil in financial markets.
"We're beaten," said his boss Josef Ackermann, during a press conference. His strategy remains "unchanged" and he confirmed the targets for 2008 of a taxable profit of 8.4 billion euros.
"Tensions on the financial markets will still take some time and could also feel the effects on the real economy. (...) Something in the financial system is on through," admitted Mr. Ackermann.
But Deutsche Bank is "confident" and rely in particular on emerging countries, like China, where it has strengthened recently.
It is also "open to additional acquisitions in its core business, he stressed, while rumors of a rapprochement in retail banking with Postbank return regularly.
"The Deutsche Bank (...) has good chances to emerge stronger from a difficult phase for the financial sector," he said.
During the last quarter of 2007, she still saw its net profits melt by 47% over one year to 969 million euros. But it is better than expected by analysts.
In the last quarter, the investment bank - more sensitive to turbulence in financial markets and the first division of Deutsche Bank - has particularly suffered, with a taxable income that fall of 43%. But the group has benefited from other pillar, private customers.
This trend is reflected in the annual report. In 2007, the net decline in investment banking (CIB), whose taxable profit reached 5.1 billion euros (-15%), was partially offset by the sale of stakes in several industry groups, including the chemistry group Linde (Xetra: 648300 - news) and by private clients of Deutsche Bank.
The division dedicated to private clients and asset management (CPTED) saw its taxable profit rise 6% to 2.1 billion euros. The "private and business customers" (PBC) has increased by 10% over the year to 1.1 billion euros.
Under the fiscal 2007, the institution of Frankfurt will propose a dividend increase of 12.5% to 4.50 euros per share.
Rassurée, the Frankfurt Stock Exchange gratifiait action by an increase of 1.53% to 76.15 euros to 09H00 GMT, while the DAX index Features (Xetra: news) fell by 0.83%.
Maintaining forecasts 2008 has pleasantly surprised. "We believe that this is an ambitious goal, but the result of the last quarter of 2007 showed that the bank can achieve good results even in these difficult times", said Konrad Becker, an analyst at Merck Finck.
by erectusplus at 8:14 AM |
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