Bloomberg News

Deutsche Bank First-Quarter Profit May Fall From Year Ago: Table

April 24, 2012

Deutsche Bank AG (DBK), Germany’s largest bank, will probably report a drop in first-quarter profit as a rebound in investment-banking earnings wasn’t enough to match year-earlier levels.

Net income probably declined to 1.56 billion euros ($2.05 billion euros, from 2.06 billion euros in the year-earlier period and compared with 147 million euros in the fourth quarter, according to the average estimate of nine analysts surveyed by Bloomberg.

Chief Executive Officer Josef Ackermann will publish earnings for the last time on April 26 before stepping down from the Frankfurt-based bank at the end of May. Pretax profit at the investment bank probably rebounded to 1.64 billion euros after a loss in the preceding three months, analysts said, as the European Central Bank sparked a revival in trading income by pumping more than 1 trillion euros into the banking system since December. That wasn’t sufficient to match the Deutsche Bank’s earnings in the year-earlier period.

With the ECB’s three-year loans “we have seen an improved revenue environment for European investment banks in the first six to eight weeks of the year,” said Amit Goel, an analyst at Credit Suisse Group AG. (CSGN) “FICC revenues have rebounded strongly, especially rates products,” Goel and colleagues wrote in an April 19 note, referring to fixed income, currencies and commodities.

Deutsche Bank has advanced 11 percent in Frankfurt trading this year. The shares fell 0.8 percent to 32.71 euros as of 1:26 p.m. local time, valuing the company at about 30.4 billion euros.

Following is a table of average first-quarter estimates, year-earlier figures and results from the previous quarter, as well as the number of analysts surveyed. The figures are in millions of euros.

                           Q1 2012   Q1 2011   Q4 2011    Number
                          Expected  Reported  Reported  Analysts
GROUP
Net interest income
before loan-loss provisions  4,434     4,167     4,511      7
Loan-loss provisions           489       373       540      8
Fee and commission income    2,945     3,081     2,610      7
Pretax profit/loss           2,342     3,021      -351     14
Net income/loss              1,562     2,062       147      9

                           Q1 2012   Q1 2011   Q4 2011    Number
                          Expected  Reported  Reported  Analysts
DIVISIONS
Corporate Banking & Securities:
Sales and trading, equity      750       943       539      6
Sales and trading, debt      3,123     3,691     1,043      6
and other products
Origination, equity            120       181        67      6
Origination, debt              321       378       191      5
Advisory                       142       159       172      5
Loan products                  379       452       344      5
Total revenue                4,903     5,843     2,463      7
Non-interest costs           3,671     3,533     2,737      4
Pretax profit                1,637     2,287      -422      8


                           Q1 2012   Q1 2011   Q4 2011    Number
                          Expected  Reported  Reported  Analysts
Global Transaction Banking:
Pretax profit                  346       274       284      8
Private & Business Clients:
Pretax profit                  466       788       227      9
Asset & Wealth Management:
Pretax profit                  198       190       165      9
Corporate Investments:
Pretax profit/loss            -149      -165      -722      6

To contact the reporters on this story: Nicholas Comfort in Frankfurt at ncomfort1@bloomberg.net; Annette Weisbach in Frankfurt at aweisbach1@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net


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