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Deutsche Bank avoids further write-downs; profit falls 47%

Feb 7, 2008 Market Outlook

Deutsche Bank avoids further write-downs

Profit drops 47% on weaker investment banking; sticks to 2008 target

By Simon Kennedy, MarketWatch

Last Update: 4:57 AM ET Feb 7, 2008

LONDON (MarketWatch) — Deutsche Bank on Thursday said it had successfully
avoided any major write-downs in the fourth-quarter and stuck to its earnings
target in the face of tough market conditions as its latest profit largely
matched expectations.

Germany’s largest bank said net profit for the fourth quarter fell 47% to 953
million euros ($1.4 billion), hurt by lower investment-banking profit and
compared to a year-ago quarter that benefited from 355 million euros of tax
credits.

Pretax profit fell 25% to 1.44 billion euros, in line with the consensus
forecast.

Deutsche Bank (DE:514000) said it didn’t take any write-downs related to subprime
or other mortgage exposure in the quarter. In its leveraged finance operations,
where it had significant write-downs in the third quarter, the latest charges
were kept below 50 million euros.

In October the bank announced third-quarter write-downs of around 2.16 billion
euros, but on Thursday said it was able to avoid further losses thanks to strong
risk management during the credit crisis.

Shares gained 2% in early trading amid broader declines for European stock
markets.

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