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Letters from the Chairman
Letters from the Chairman
September 30, 2008
The third quarter 2008 was characterized by a considerable intensification of the credit crisis in September. Conditions in credit markets, already very difficult, deteriorated further, and liquidity in the financial system became scarcer than at any point in the crisis. The collapse of a major U.S. investment bank deeply affected market confidence. Equity markets, which had so far performed somewhat better than credit markets, suffered some of the steepest falls on record. These exceptionally difficult conditions persisted in October. In response, governments and central banks across the world intervened on an unprecedented scale to recapitalize major banks, inject liquidity into markets, reduce interest rates, provide or improve protection for depositors, stimulate inter-bank lending, and purchase troubled assets. The authorities also facilitated a wave of consolidation, as large banks took over other institutions which had been severely affected by the environment. We have welcomed, and will continue to support, efforts by governments and international bodies to develop coordinated responses to systemic issues.
Despite these extraordinary conditions, Deutsche Bank reported a profit for the quarter. Net income was € 414 million, or 83 cents per share (diluted), including certain tax benefits, after a pre-tax profit of € 93 million. Our Corporate Banking & Securities Division recorded a pre-tax loss of € 789 million, reflecting write-downs on legacy exposures and trading losses in extremely difficult markets. Pre-tax profits were € 449 million in our other divisions – Global Transaction Banking, Asset and Wealth Management, and Private & Business Clients – while Corporate Investments reported a pre-tax profit of € 238 million. We continue to apply the fair value accounting option only to a very small proportion of our own debt, which resulted in a gain of only € 146 million in the quarter. If we had applied the fair value option more consistent with common industry practice, we would have reported a gain in excess of € 2 billion in this quarter’s result.
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Letters from the Chairman
June 30, 2008
“...The second quarter of 2008 proved to be another very challenging quarter for the banking industry. After stabilizing in April, markets again deteriorated during June, with the result that the first half-year of 2008 turned out to be one of the most difficult for many years....” [more]
March 31, 2008
“...In the first quarter of 2008, financial market conditions were the most difficult in recent memory. Conditions in credit markets, and liquidity in the financial system, were both very tight....” [more]
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IR Releases on Financial Results 2008
IR Releases on Financial Results 2007
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