Deutsche Bank (XETRA: DBKGn.DE / NYSE: DB) today reported results for the third quarter and first nine months of 2010. Net income for the quarter was EUR 1.1 billion excluding the charge of EUR 2.3 billion relating to Deutsche Bank’s stake in Postbank and the related mandatory exchangeable bond, versus net income of EUR 1.4 billion in the third quarter 2009, which included net positive tax effects.
Including the aforementioned charge net loss in the third quarter 2010 was EUR 1.2 billion. Diluted earnings per share on a reported basis were negative EUR 1.75, versus positive EUR 1.92 in the prior year period.
- Strong operating income before income taxes of EUR 1.3 billion; including the Postbank related charge loss before income taxes of EUR 1.0 billion.
- Revenues of EUR 7.3 billion; including the Postbank related charge net revenues were EUR 5.0 billion.
- The Postbank related effect is a non-cash charge without corresponding tax benefit.
- Tier 1 capital ratio of 11.5%; core Tier 1 ratio of 7.6%; not yet reflected in this ratio is the EUR 10.2 billion capital increase which was successfully completed on 6 October 2010.
- Solid third quarter performance in CIB with income before income taxes up 11% y-o-y.
- Good results in PCAM: Income before income taxes up 14% y-o-y.
Excluding the Postbank related charge income before income taxes was EUR 1.3 billion, comparable versus income before income taxes of EUR 1.3 billion in the prior year quarter. Including the aforementioned charge Deutsche Bank recorded a loss before income taxes of EUR 1.0 billion. Per the Group’s target definition, which excludes significant gains and charges, pre-tax return on average active equity was positive 13%. Pre-tax return on average active equity on a reported basis was negative 10%.
For the first nine months of 2010, net income was EUR 4.1 billion excluding the charge relating to the bank’s stake in Postbank and the related mandatory exchangeable bond. This compares to net income of EUR 3.6 billion in the first nine months of 2009. Including the aforementioned charge net income for the first nine months 2010 was EUR 1.7 billion.
Income before income taxes for the first nine months 2010 was EUR 5.6 billion excluding the aforementioned charge, versus EUR 4.4 billion in the prior year. Including the charge income before income taxes for the first nine months 2010 was EUR 3.3 billion.
Diluted earnings per share in the same period were EUR 2.33, versus EUR 5.14 in the first nine months of 2009. Per target definition, pre-tax return on average active equity was 18%, unchanged versus the prior year period. Reported pre-tax return on average active equity was 11%, compared to 17% in the prior year period.
Dr. Josef Ackermann, Chairman of the Management Board, said: "The third quarter results again prove the robustness of our recalibrated business model despite the difficult ongoing macro-economic and market conditions."
He added: "We have successfully executed the largest capital increase in the history of Deutsche Bank, which strengthens our capital base mainly to accommodate the planned acquisition of Postbank. At the same time we have further strengthened our leading investment banking franchise by significantly improving its risk-return profile; and our retail banking operation is vastly increasing its footprint in Germany, which will balance our earnings towards an even more stable business."
Deutsche BankDate: 27.10.2010