Deutsche Bank earns sag on crisis volatility
Deutsche Bank said earnings fell 46 percent in the second quarter as the eurozone debt crisis hurt investment banking activity and revenue from trading securities.
Germany's largest bank said Tuesday that income fell at its investment banking division as fewer client companies came to the bank for its services helping them issue shares.
It also said that revenue from trading debt securities — one of the investment categories most affected by the crisis — was down. The company said that was partly due to the company taking "deliberately lower levels of risk" due to subdued trading volumes.
Net earnings fell to €661 million from €1.233 billion in the same three months a year ago.
Revenues were down 6 percent to €8.0 billion. A major hit to revenue came at the corporate banking and securities division, where share underwriting and debt trading are located, falling by €451 million to €3.5 billion.
The earnings statement Tuesday was the first reported under new co-CEOs Anshu Jain and Juergen Fitschen, who took over from Josef Ackermann in May.
"The European sovereign debt crisis continues to weigh on investor confidence and client activity across the bank," it said.
European governments such as Spain and Italy are struggling with high levels of debt, and the prospect they might default or need bailouts has unnerved markets.
The earnings release added detail to an early release of a few numbers last week.