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Apr-29-2008Deutsche Bank, Allianz take fresh write-downs(topic overview)
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The loss, which came after the bank was forced to make fresh writedowns totalling 2.7 billion euros, was less than the more than 170 million euros that analysts had predicted. 'In the first quarter of this year, the financial market conditions were the most difficult in recent memory,' said Deutsche Bank chief Josef Ackermann announcing the results. 'In the month of March, pressure on the banking sector was more intense than at any time since the current credit downturn began,' he said. Deutsche has faired better than many of its rivals in recent months as the fallout from the U.S. subprime mortgage market crisis has engulfed banks around the world notably in Switzerland and on Wall Street. While its first-quarter earnings were boosted by 854 million euros from selling stakes in companies, including shares in German carmaker Daimler AG and insurer Allianz AG and by a 113-million-euro tax gain, the financial turmoil resulting from the subprime upheaval hit the group's key investment banking business. Deutsche has already warned that its 8.4-billion-euro profit target could be at risk as a result of additional writedowns and volatile financial markets. Announcing its results Tuesday, the bank said its investment banking operations posted a 1.6 billion-euro pretax loss during the first three months of the year. [1] Bank chief executive Josef Ackermann minced no words about the performance, or the state of the markets. "In the first quarter of this year, financial market conditions were the most difficult in recent memory. In the month of March, pressure on the banking sector was more intense than at any time since the current credit downturn began," he said in a statement. "Inevitably, this left its mark on Deutsche Bank's results. Relative to the environment and the industry, this is a solid performance." The bank's result was cushioned by its decision to sell off investments in automaker Daimler AG, insurer Allianz SE and gas company Linde AG, which let the bank book a capital gain of 854 million euros ($1.33 billion). However the capital gains were offset by some mark downs, the biggest of which was a reevaluation of its option to buy more shares in China's Hua Xia Bank Co. Ltd.[2]
Deutsche wrote off €2.7 billion (£2.1 billion) from the credit crunch while which pushed it into losses of €254 million, down from a €3.16 billion profit. It suffered from a €1.77 billion mark-down on leveraged loans and $885 million mark-down on commercial real estate and residential mortgage-backed securities. Overall charges were slightly higher than the €2.5 billion flagged earlier this month. The result would have been worse had the bank not cashed in investments such as a stake in carmaker Daimler, worth €854 million. Josef Ackermann, Deutsche's chairman and chief executive, said that financial market conditions in the first quarter of this year "were the most difficult in recent memory".[3]
Corporate Banking & Securities reported a pre-tax loss of 1.60 billion euros, compared to a profit of 2.18 billion euros last year, mainly affected by mark-downs of 2.7 billion euros on leveraged loans and loan commitments, commercial real estate, residential mortgage -backed securities, and significantly lower revenues in the credit trading business. In early April, Deutsche Bank had noted that it expects to record mark-downs of around 2.5 billion euros in its first quarter, related to leveraged loans and loan commitments, commercial real estate, and residential mortgage-backed securities, mainly Alt-A.[4] Excluding certain significant gains of 854 million euros in the current quarter and 252 million euros in the prior year, the company's pre-tax loss in 2008 first quarter would have been 1.1 billion euros, compared to income of 2.9 billion euros last year. Deutsche Bank pointed out that applying the fair value option in line with common industry practice would have contributed 2.0 billion euros to its pre-tax profits. According to the company, the deteriorating market conditions mainly impacted its investment banking business.[4]
Even Europe's top insurer Allianz SE has been affected. Deutsche Bank is looking increasingly vulnerable as the global crisis squeezes its most important businesses such as trading in debt products. Revenue at Deutsche's investment bank tumbled to 880 million euros in the first quarter from 6.1 billion a year ago. In a conference call with analysts, finance chief Antonio di Iorio retreated from the bank's goal of a pretax profit of 8.4 billion euros this year, saying uncertain markets made a forecast impossible.[5] FRANKFURT (Reuters) - Europe's biggest insurer Allianz (ALVG.DE: Quote, Profile, Research ) unveiled fresh writedowns at its Dresdner Bank unit of 900 million euros ($1.4 billion) from the global markets crisis and said the turmoil could hurt future profits. The latest writedowns -- more than double what they were when Allianz finance chief Helmut Perlet updated investors at the beginning of the year -- take the insurer's total bill from the financial turmoil to about 2.5 billion euros. Allianz also warned that its profit targets, while still attainable, would become harder to reach the longer the turmoil lasted. The remarks came as Deutsche Bank (DBKGn.DE: Quote, Profile, Research ) retreated from its 2008 goal and announced its first quarterly loss in five years.[6] FRANKFURT (Reuters) - Deutsche Bank AG suffered its first quarterly loss in five years as global financial turmoil heaped more than $4 billion in writedowns on the bank and market ructions put a brake on earnings. The bank said on Tuesday it had slipped to a pretax loss of 254 million euros ($398 million) in the first three months of the year from a 3 billion profit a year earlier, marking its worst quarter since the collapse of the dot-com bubble.[5]
FRANKFURT (Thomson Financial) - Deutsche Bank AG. posted its first quarterly loss in five years and scrapped its full year forecast of achieving adjusted pretax profit of 8.4 billion euros. 'These are very uncertain times, the markets are unpredictable,' chief financial officer Anthony di Iorio said, adding that Deutsche cannot forecast what its full-year result will be. MerckFinck analyst Konrad Becker said the fact that Deutsche has not reiterated its 8.4 billion euro pretax 'vision' indicates that the management is currently not expecting to achieve it, adding that the market also does not expect the bank to meet the target. In the first quarter, Deutsche posted a pretax loss of 1.1 billion euros according to its target definition, which excludes significant one-off gains from industrial holdings.[7] FRANKFURT (Thomson Financial) - Deutsche Bank AG (nyse: DB - news - people ). declined to reiterate its full-year pretax target of 8.4 billion euros, citing the ongoing financial crisis. 'These are very uncertain times, the markets are unpredictable,' chief financial officer Anthony di Iorio said in a conference call, when asked if the bank's vision of 8.4 billion euros pretax profit still stands. He added that, due to the current market turmoil, Deutsche cannot forecast what its full-year result will be. In the first quarter, Deutsche posted a pretax loss of 1.1 billion euros according to its target definition, which excludes significant one-off gains from industrial holdings.[8]
LONDON/FRANKFURT (Reuters) - Britain's biggest mortgage lender begged for new funding on Tuesday and Germany's top bank suffered its first quarterly loss in years as the credit crunch sapped financial industry strength. UK-based HBOS asked shareholders for 4 billion pounds ($7.9 billion) via a rights issue and said it would cut its dividend payout as it grapples with toxic assets and a deteriorating home loans market. Deutsche Bank wrote down 2.7 billion euros ($4.2 billion) as its contribution to the burgeoning pile of global property-based asset mark-downs, and abandoned its 2008 profits target.[9] The world's biggest banks and securities firms have reported credit losses and writedowns of more than $312 billion linked to the U.S. subprime meltdown, data compiled by Bloomberg show. Deutsche Bank AG, Germany's biggest bank, reported its first quarterly loss in five years today after writing down the value of loans and asset-backed securities by 2.7 billion euros.[10] April 28 (Bloomberg) -- Deutsche Bank AG, Germany's biggest bank, may report its first quarterly loss in five years after writing down the value of loans for leveraged buyouts and asset- backed securities by 2.5 billion euros ($3.9 billion).[11]
"All in all, Deutsche Bank's quarterly loss was in line with expectations only due to high disposal gains." Deutsche Bank said its net interest income rose to nearly 2.7 billion euros ($4.2 billion) in the first quarter compared with 2.05 billion euros last year while its net commission income was down to 2.5 billion euros ($3.9 billion) from 2.9 billion euros.[2] Deutsche Bank (nyse: DB - news - people ) slipped 0.7%, or 50 euro cents, to 76.27 euros ($118.75), on Tuesday morning in Frankfurt, after it said it made a net loss of 131 million euros ($203.9 million) during the first quarter of 2008. It had made 2.1 billion euros ($3.3 billion) a year ago.[12] The Frankfurt-based bank lost 141 million euros ($220.4 million) in the first quarter compared with a 2.1 billion euros profit a year earlier. That was better than the net loss of 235 million euros ($367.3 million) that analysts polled by Dow Jones Newswires were expecting.[2] The bank posted a first quarter net loss excluding minority holdings of 131 million euros (205 million dollars), compared with a profit of 2.12 billion euros in the same period a year earlier. Its pretax result fell to a loss of 254 million euros from a profit of 3.16 billion euros.[13]
FRANKFURT (AFP) — German insurer Allianz said Tuesday that its first quarter net profit will slump to a third of what it was in the year-earlier period due the ongoing financial crisis and weak stock markets. The Munich-based group said it was writing off 900 million euros (1.4 billion dollars) worth of "structured financial products" at its Dresdner Bank unit. And because of falling stock prices hitting its investments, net profit in the first quarter would fall to around 1.1 billion euros from 3.2 billion euros in the same period a year earlier.[14] The company said it is expecting mark-downs of almost 900 million euros for the quarter, accrued in the area of structured financial products of Dresdner Bank, due to the ongoing financial market crisis. Aside from this, Allianz said that it is estimating an operating profit of 1.8 billion euros for the period, down on the 2.9 billion euros it recorded in the first quarter of 2007.[15] Allianz said it anticipates mark-downs of nearly 0.9 billion euros for the first quarter 2008, which will have to be accrued in the area of structured financial products of Dresdner Bank due to the ongoing financial market crisis. Helmut Perlet, Board Member of Allianz, commented, 'In this difficult market environment, an operating profit of almost 2 billion euros underlines our sustainable underlying profitability. We consider our medium term targets for 2009 to be still feasible, even though this will become harder, the longer the financial crisis will last." The company will issue its first quarter 2008 results on May 9, 2008.[16] Allianz said that based on disadvantageous stock prices, realized gains from investments were consciously kept low, while in previous year?s quarter during favorable market conditions realized gains amounted to 2 billion euros. Therefore, net income for the first quarter of 2008 is expected to reach about 1.1 billion euros, well below previous year?s result of 3.2 billion euros. ?In this difficult market environment, an operating profit of almost 2 billion euros underlines our sustainable underlying profitability,? said Helmut Perlet, board member of Allianz, in a statement. ?Hence, we consider our medium-term targets for 2009 to be still feasible, even though this will become harder, the longer the financial crisis will last.? Allianz Societas Europaea currently has a Best?s Financial Strength Rating of A+ (Superior). (By: Marc Jones, London news editor: [email protected]) Copyright ? 2008 A.M. Best Company, Inc.[15]
Allianz, Europes biggest insurance company, said in a preliminary report that it expected first-quarter write-downs of about 900 million in Dresdners structured financial products business, and that first quarter net income would thus fall about 66 percent to 1.1 billion, from 3.2 billion a year earlier. Helmut Perlet, an Allianz board member, said in a statement that the banks targets for 2009 appeared to still be feasible, "even though this will become harder, the longer the financial crisis will last."[17] Germany's IKB bank announced that it had lost '1 billion in the first half of its 2007/2008 financial year on the back of write-downs. The bank had to be bailed out last year opnbrktmore.clsbrkt because of its exposure to the U.S. subprime market. The German insurance giant Allianz also said its profits were down significantly in the first quarter, dropping to '1.1 billion compared to '3.2 billion for the same period in 2007. The Munich-based group said it was writing off '900 million worth of structured financial products at its Dresdner Bank unit opnbrktmore.clsbrkt. Chairman Helmut Perlet announced on Tuesday that Allianz was sticking to its targets for 2009 for now but added that "this will become harder, the longer the financial crisis lasts."[18] The Frankfurt-based banking division marked down almost 900 million euros in the first quarter related to the U.S. subprime-mortgage market meltdown, adding to the 1.3 billion euros it wrote down last year. "It's time for them to get rid of Dresdner,'' said Juergen Meyer, who helps oversee 1.2 billion euros at SEB Asset Management in Frankfurt, including Allianz shares. "This shows once more that Dresdner Bank is Allianz's Chrysler,'' he said, referring to the German unit that Daimler AG shed last year, severing a nine-year tie that cut the U.S. automaker's market value by $12.6 billion.[10]
Deutsche is facing hurdles in leveraged finance and structured credit. Formerly a big money spinner, this market has ground to a halt as market turmoil spread. Most of the first-quarter writedowns come from Deutsche's commitments to lend money to customers such as private equity investors and companies carrying out acquisitions. The bank would normally farm these loans out to other banks, but it has become harder to sell on debt after the credit squeeze which began last year with a wave of U.S. mortgage defaults. It has to write down the value of these loans to reflect this. Deutsche said its exposure to leveraged finance at the end of the first quarter was more than 33 billion euros. Di Iorio said it had sold some such loans. The result in the first quarter would have been worse had the bank not cashed in investments in companies such as carmaker Daimler worth 854 million euros.[19] The first-quarter pretax declined to a loss of 254 million euros compared to a gain of 3.163 billion a year earlier. The figures largely matched analysts expectations for a pretax loss of 272 million euros and slightly beat their estimate for a net loss of 247 million euros. Deutsche's result was weighed down by 1.770 billion euros net mark-downs on leveraged loans and loan commitments and 885 million euros mark-downs on commercial real estate loans and residential mortgage-backed securities.[20]
Consumer banking profit probably declined 4.1 percent to 281 million euros in the quarter, while asset and wealth management earnings may have gained 11 percent to 208 million euros, according to the survey of analysts. The German bank said last month its full-year forecast for pretax profit of 8.4 billion euros, which excludes one-time effects, is at risk, citing a slowdown in investment banking revenue and economic growth. Deutsche Bank gets about half its profit from fixed-income, including asset-backed and other structured securities, according to JPMorgan Chase & Co. estimates. Many of these business areas have dried up because of the credit crunch.[11] The German institution is predicted by analysts to post a deficit exceeding $250 million, according to a poll of banking experts conducted by the news agency. If the bank reports a loss in its profits declaration tomorrow, it will be its first such announcement for five years. Deutsche Bank has not been hit with sub-prime write-downs to the extent that European rivals such as UBS have suffered, an expert has pointed out. Fund manager Thomas Koerfgen commented: "Good risk management and the push to expand retail banking and asset management are paying off''' appears to have done better than its Swiss counterparts.'' A report in German newspaper Der Spiegel also claims today that the bank will seek a $4 billion rights issue from shareholders this month, in order to fund share purchases in institutions weakened by the credit crunch.[21] Pretax earnings fell to a loss of '254 million, compared to a '3.2 billion profit in the first quarter of 2007, the bank added. Deutsche Bank said it had been forced to write down '2.7 billion ($4.2 billion) in the value of assets, pushing it into its first loss since 2003. "In the first quarter of this year, financial market conditions were the most difficult in recent memory.[18] Deutsche Bank took write-downs of 2.7 billion euros, after initially appearing to have escaped the worst of a financial crisis that followed the collapse of the U.S. market for high risk, or subprime, mortgages in mid-2007. Chairman Josef Ackermann said in a statement as saying that "in the first quarter of this year, financial market conditions were the most difficult in recent memory.[13] Deutsche Bank's shares were down nearly 1 percent at 76.16 euros at 4:57 a.m. EDT (0857 GMT). They have fallen about 15 percent so far this year, though they have fared better than the European sector as a whole which is down by about 20 percent. Chief Executive Josef Ackermann, who had been one of the most outspoken in his industry at the start of the crisis, has been growing increasingly pessimistic in his recent remarks. "In the first quarter of this year, the financial market conditions were the most difficult in recent memory," he said in a statement.[5]
Deutsche had announced on April 1 that it anticipated first-quarter mark-downs of about 2.5 billion euros. Chairman Josef Ackermann was quoted as saying that "in the first quarter of this year, financial market conditions were the most difficult in recent memory.[22]
Including 2.9 billion euros in gross mark-downs booked in the first quarter, exposure on leveraged finance stood at 30.2 billion euros at the end of March. Asked about potential acquisitions, di Iorio said the bank wants to expand its stable businesses private and business clients, asset and wealth management as well as global transaction banking and is looking for takeover opportunities in those areas. 'We always look at opportunities in terms of what they will mean for our shareholders,' di Iorio stressed but declined to comment on specific takeover targets. Chief executive Josef Ackermann said earlier this month that Deutsche wants to play an active role in the consolidation of the German banking market and is interested in Deutsche Postbank AG. should it be put up for sale. Juergen Fitschen, of Deutsche's executive committee, said last week the bank is also prepared to look into Citigroup (nyse: C - news - people )'s German unit Citibank in the event of a sale.[8] "In the month of March, pressure on the banking sector was more intense than at any time since the current credit downturn began. Inevitably, this left its mark on Deutsche Bank's results." The bank said it had managed to limit its losses through the sale of share holdings in the German groups Daimler, Allianz and Linde. Without these gains, the net loss would have climbed to 1.1 billion euros. Deutsche Bank had already warned it would be hard to hit its 2008 profit target that target owing to turmoil that has shaken the banking sector. On April 1, Deutsche Bank said its lucrative investment banking unit had taken a serious hit from the U.S. subprime turbulence, which has threatened several German banks with bankruptcy.[13] Deutsche now holds 2.9 percent in Daimler compared to 4.4 percent at the end of last year. Its stake in Allianz (nyse: AZ - news - people ) declined to 1.5 percent from 1.7 percent, while it cut its Linde holding to 3.8 percent from 5.2 percent. Deutsche Bank said that according to its target definition, which excludes significant one-off gains, first-quarter pretax loss came to 1.1 billion euros, making the full year pretax profit target of 8.4 billion a distant prospect. MerckFinck analyst Konrad Becker said the fact that Deutsche has not reiterated its 8.4 billion euros pretax 'vision' indicates that the management is currently not expecting to achieve it, adding that the market also does not expect the bank to meet the target.[20] The company's quarterly pre-tax loss was 254 million euros, compared to pre-tax profit of 3.16 billion euros last year. Previously, Deutsche Bank had warned that the unfavorable market conditions and slowing economic growth would adversely pull back it from reaching its fiscal 2008 pre-tax profit target of 8.4 billion euros.[4]
FRANKFURT (Thomson Financial) - Deutsche Bank AG (nyse: DB - news - people ). posted its first quarterly loss in five years as net after minorities turned to a loss of 131 million euros from a gain of 2.121 billion, weighed down by 2.7 billion in mark-downs due to the financial crisis.[20] FRANKFURT (AFP) — Germany's biggest bank, Deutsche Bank, posted its first quarterly loss in five years on Tuesday as it wrote down 2.7 billion euros (4.2 billion dollars) in the value of assets as a result of the global financial crisis.[22]
FRANKFURT -- Deutsche Bank AG Tuesday reported its first quarterly net loss in five years, reflecting additional asset write-downs, lower revenue and a trading loss in a deteriorating market. Germany's largest bank by market capitalization said its net loss was €131 million compared with a net profit of €2.12 billion a year earlier.[23] Deutsche Bank reported a net loss of 141 million for the first three months of 2008, compared with a net profit of 2.1 billion a year earlier, as it wrote down 2.7 billion, or about $4.2 billion.[17]
The Frankfurt-based bank lost 141 million (US$220.4 million) in the first quarter compared with a 2.1 billion profit a year earlier. It still beat expectations because the net loss was lower than the 235 million (US$367.3 million) figure that analysts polled by Dow Jones Newswires were expecting.[24] "All in all, Deutsche Banks quarterly loss was in line with expectations only due to high disposal gains." Deutsche Bank said its net interest income rose to nearly 2.7 billion (US$4.2 billion) in the first quarter compared with 2.05 billion last year while its net commission income was down to 2.5 billion (US$3.9 billion) from 2.9 billion.[24] March was a very cruel month for financial firms, from Bear Stearns to General Electric. , which had so far been spared the worst of the market contagion, was not immune. The giant German bank swung to its first quarterly loss in five years, writing down $4.2 billion on leveraged loans and mortgage-backed securities.[25] Deutsche Bank on Tuesday reported its first quarterly loss in five years after writing down the value of loans for leveraged buyouts and asset-backed securities by '2.7bn (US$4.2bn).[26]
LONDON - Germany's Deutsche Bank reported its first quarterly loss for five years on Tuesday, after writing down $4.2 billion on its investments.[12] Deutsche Bank has written down about 2.7bn euros ($4.2bn; '2.11bn) in the first three months of 2008 because of the U.S. mortgage market problems. Germany's biggest bank also said it had made a pre-tax loss of 254m euros in the first three months of 2008, its first quarterly loss in five years. Problems were evident elsewhere, and insurer Allianz said it would write off 900m euros at its Dresdner Bank.[27] Europe's biggest insurer Allianz unveiled writedowns from the global financial crisis of 900 million euros ($1.4 billion) in the first quarter and said the turmoil could endanger its medium-term goals. The markdowns stemming the insurer's embattled Dresdner Bank are more than double those announced by Allianz finance chief Helmut Perlet at the beginning of the year.[28] MUNICH (Thomson Financial) - Allianz (nyse: AZ - news - people ) SE said it expects first-quarter operating profit to decline to 1.8 billion euros from 2.9 billion euros as its Dresdner Bank (other-otc: DRSDY.PK - news - people ) unit has to post almost 900 million euros of mark-downs due to the ongoing financial crisis.[29] Munich - Europe's biggest insurer Allianz AG said Tuesday its first-quarter earnings declined after its Dresdner Bank offshoot was forced to write down almost 900 million euros (1.4 billion dollars) as a result of the global financial crisis.[30]
Financial director Anthony di Iorio told an analyst conference call the financial crisis had made it impossible to provide an accurate forecast for the full year. "These are very uncertain times, the markets are unpredictable," he replied when pressed to confirm the bank's outlook for pretax profit of 8.4 billion euros. Di Ioria added that due to the current market turmoil, Deutsche Bank could not give a forecast for its full-year results.[13] The giant insurer said operating profit dropped to 1.8 billion euros during the first three months of the year compared to 2.9 billion euros in the same period of 2007. The group released its preliminary results ahead of the publication of its full first-quarter figures on May 9. 'We consider our medium-term targets for 2009 to be still feasible even though this will become harder, the longer the financial crisis will last,' said Allianz board member Helmut Perlet.[30] Operating profit for the quarter is anticipated to be 1.8 billion euros, down from 2.9 billion euros in the first quarter of 2007. According to the Europe's largest insurer by gross premium, its prior-year same quarter results were positively impacted by gains amounted to 2.0 billion euros, while its current year first-quarter results were unfavorably affected by disadvantageous stock prices and feeble realized gains from investments.[16]
Most worryingly for investors, the Deutsche results, the German bank's worst since the collapse of the dotcom bubble, showed signs of broader problems. Revenue at Deutsche's investment bank arm slumped to 880 million euros in the first quarter from 6.1 billion a year ago.[9] Abouhossein added that Deutsche Bank, Societe Generale and Credit Agricole would be the next European banks to take write-downs in the current market environment. Germany's Deutsche Bank is expected to take write-downs of 2.5 billion euros ($3.9 billion) for the first quarter, following its detailed warning to the market earlier this month. JPMorgan's Abouhossein predicted that this batch of mark-downs would be more than half of Deutsche Bank's total write-downs for 2008. He said the bank would write down a further 2.1 billion euros ($3.9 billion), before tax, this year.[31] The first quarter of 2008 has not left any of Europe's big hitters intact, from Credit Suisse (nyse: CS - news - people ) and UBS (nyse: UBS - news - people ) through to Deutsche Bank (nyse: DB - news - people ), which is expected to report a first-quarter loss of almost 300 million euros ($469.3 million) on Tuesday.[31] The company's exposure to subprime remains relatively modest, it said. Earlier, while presenting 2007 annual report, Ackermann had pointed out that Deutsche Bank was less impacted by the crisis in the'sub-prime' segment of the mortgage market than some other major banks, as it had positioned defensively at an early stage in the areas most directly affected by the crisis, which started in the second half of fiscal 2007. On April 14, the Wall Street Journal had reported that Deutsche Bank is looking to unload about $20 billion of its debt related to leveraged buyouts to investors or private-equity firms. On April 24, Swiss financial services company Credit Suisse Group (CS) said it slipped to a loss in its first quarter, hurt by value reductions of CHF 5.28 billion in its leveraged finance and structured products businesses, amid the market downturn.[4] Deutsche Bank sidestepped the worst of the subprime contagion because of early bets against the U.S. housing market. UBS AG, the largest Swiss bank, recorded almost 38 billion Swiss francs ($36.7 billion) of markdowns since July, while Credit Suisse Group last week posted its first loss since 2003 on 5.3 billion francs of writedowns in the first quarter. "Deutsche Bank appears to have done better than its Swiss counterparts,'' said Thomas Koerfgen, a Frankfurt-based fund manager at SEB Asset Management, which oversees more than $15 billion, including Deutsche Bank shares.[11]
BERLIN (AP) — Deutsche Bank AG said Tuesday that it wrote down $4.2 billion during the first quarter, pushing Germany's biggest bank to its first quarterly loss since 2003 amid trading losses, lower revenue and global market jitters. Despite the loss, and the write-downs, the figures pale in comparison to other banks, which have seen their write-downs balloon. The largest was reported by Switzerland's UBS AG earlier this month which said it saw losses and write-downs of approximately $19 billion in the first quarter, bringing its tally to $37.4 billion.[2]
Di Iorio also said the bank had sold around 1.0 billion euros worth of loans provided to finance leveraged buy-outs since the end of the first quarter. International media had reported recently that Deutsche Bank was preparing to sell up to 20 billion dollars worth of such loans.[13] In April, Deutsche Bank had given fair warning to markets, saying it expected at least 2.5 billion euros in write-downs in the first quarter, slightly less than what it reported.[2]
The market value of protection Deutsche bought from monolines declined to 1.1 billion euros from 1.9 billion. Deutsche's Private clients and Asset Management division posted 1 percent higher net revenues of 2.5 billion euros and a pretax rise to 492 million from 481 million in the first quarter.[20] In the first quarter, net interest income rose 30 percent to 2.676 billion euros as loan loss provisions were up 16 percent to 114 million.[20]
A pretax loss of 1.6 billion euros at the corporate banking and securities sub-division was partly offset by 17 percent higher pretax profit of 250 million euro in global transaction banking. Deutsche's gross exposure to leveraged loans and loan commitments declined to 33.1 billion as of March 31 from 36.2 billion at the end of 2007.[20] The bank's results were weighed down by 1.770 billion euros in mark-downs on leveraged loans and loan commitments and 885 million euros in mark-downs on commercial real estate loans and residential mortgage-backed securities.[22] Corporate Banking & Securities reported a pre-tax loss of 1.6 billion euros, mainly affected by mark-downs of 2.7 billion euros on leveraged loans and loan commitments, commercial real estate, residential mortgage -backed securities, and significantly lower revenues in the credit trading business.[32] Revenues in Sales & Trading -Debt and other products were 1.3 billion euros, down from 3.4 billion euros last year, reflecting mark-downs on Commercial Real Estate activities and on residential mortgage -backed securities, and significantly lower revenues in the credit trading business.[32]
In Corporate Banking & Securities, net revenues plunged 86% to 880 million euros from 6.12 billion euros in the prior year quarter.[4] The bank will probably post a first-quarter net loss of 174 million euros tomorrow, after earning a profit of 2.12 billion euros a year earlier, according to the median estimate of 13 analysts surveyed by Bloomberg.[11] The Frankfurt, Germany-based company's first-quarter net loss, the first in five years, was 141 million euros, compared to net income of 2.132 billion euros in the prior year period.[32] Net loss attributable to Deutsche Bank shareholders was 131 million euros, compared to prior-year net income of 2.121 billion euros.[4]
Deutsche Bank's quarterly net interest income increased to 2.68 billion euros from 2.05 billion euros a year ago.[4]
"In March, pressure on the banking sector was more intense than at any time since the current credit downturn began." The latest writedowns are equivalent to more than a third of Deutsche's 2007 net profit and more than all the markdowns it made last year. The total bill is now 5 billion euros although this strips out some fees the bank earned.[19] In the quarter, the company recorded net loss on financial assets/liabilities at fair value through profit or loss of 1.58 billion euros, compared to gains of 3.97 billion euros last year.[4] New York-based Citigroup Inc. (C) recently reported first quarter net loss of $5.1 billion or $1.02 per share, compared to a profit of $5.0 billion or $1.01 per share in the prior year quarter.[4] In early April, UBS had noted that it expects to record write-downs of around $19 billion primarily on U.S. real estate and related structured credit positions, and that it will report a net loss of about 12 billion Swiss francs for the first quarter of 2008, compared to prior year net profit of 3.44 billion Swiss francs.[4]
The Frankfurt-based bank, which is Germany's largest, said it had seen a loss of '141 million ($220 million) in the first quarter of 2008, compared to a profit of '2.1 billion in the same period last year.[18] Unveiling further writedowns of '2.7bn ($4.2bn), the bank said it had made a pretax loss of '254m in the first quarter, compared to a more than '3bn pretax profit in the same quarter last year. The result would have been worse had the bank not cashed in on investments in companies such as carmaker Daimler worth '854m.[33]
Today German firm Deutsche Bank recorded a loss of '''141m for the first quarter. It is the first time in five years that the bank has made a loss, and contrasts starkly with the '''2bn profit made last year over the same period.[34] Deutsche Bank, Germany's biggest bank, today disclosed its first quarterly loss in five years as Allianz said that the problems at its Dresdner Bank operation could threaten medium-term profits goals.[3] Frankfurt - Germany's biggest bank Deutsche Bank AG reported Tuesday its first quarterly net loss in five years as asset write- downs and a slump in financial markets undercut earnings.[1] GERMANY - Deutsche Bank reported a net loss of €141m (US$219.3m) in Q1 2008 with an 8% poorer performance in asset management revenues than the same period last year.[35]
The corporate and investment bank, including Deutsche Bank's most lucrative trading operations, saw net revenues plunge from '6.7bn to '1.5bn. In what the bank referred to as its'stable' businesses - its global transaction banking and its private client and asset management operations - income before tax rose 7% compared with the same quarter a year ago. Ackermann hinted at cuts to come in investment banking businesses that are worst exposed to the downturn, saying Deutsche was 'redeploying both human and capital resources towards growth businesses and regions'.[33] Deutsche Bank is offering discounts of as much as 9 percent to sell loans financing the leveraged buyout of U.K. pharmacy chain Alliance Boots Ltd., three investors contacted by the bank to buy the debt said on April 25. Ackermann, who has run the bank since 2002, expanded what he calls the "stable businesses'' of consumer banking and asset management by purchasing German lenders Norisbank and Berliner Bank and Britain's Tilney Investment Management Ltd. Deutsche Bank has expressed interest in Deutsche Postbank AG, the country's biggest consumer lender by clients, and Citigroup's German consumer banking operations, if they were put up for sale. "It is pursuing a sensible policy of diversification, but it remains highly exposed to developments in fixed-income trading,'' said Chambers.[11]
Deutsche Banks results came as other lenders announced further write-downs. The German insurer Allianz said Tuesday that its Dresdner Bank unit would write down about 900 million in bad investments, while HBOS, which owns the British mortgage lender Halifax, said it would tap investors for 4 billion, or nearly $8 billion, in new capital as it wrote down 2.8 billion of assets.[17] In a conference call, Deutsche declined to reiterate its full-year pre-tax target of €8.4 billion. Chief financial officer Anthony di Lorio, said: "These are very uncertain times, the markets are unpredictable." He added that, due to the current market turmoil, Deutsche cannot forecast what its full-year result wouold be. At Allianz, Dresdner Bank wrote off €900 million, more than double those announced by the insurer's finance director Helmut Perlet, at the beginning of the year.[3]
The FINANCIAL -- Allianz Group expects mark-downs of almost 0.9 billion euros for the first quarter 2008, which will have to be accrued in the area of structured financial products of Dresdner Bank due to the ongoing financial market crisis.[36] In the first quarter of 2007 market conditions were favourable and realised gains amounted to 2.0 billion euros. 'We consider our medium-term targets for 2009 to be still feasible, even though this will become harder, the longer the financial crisis will last,' management board member Helmut Perlet said in a statement.[29]
Deutsche Bank has not been able to escape the global financial crisis unscathed. It announced Tuesday that it was posting losses of '141 million for the first quarter of 2008 -- its first losses in five years.[18] Deutsche Bank made its first quarterly loss in five years as the cost of the global financial crisis mounted for Germany's biggest bank.[33] FRANKFURT (AFP) — Germany's biggest bank, Deutsche Bank, dropped earnings targets for 2008 after posting Tuesday its first quarterly loss in five years as a result of the global credit squeeze.[13] Well not entirely. Deutsche may be about to post its first quarterly loss in five years, say Bloomberg, with a '''2.5bn writedown already flagged. That looks rather well-contained as losses at other European banks escalate. Deutsche has been actively selling off its book of stuck leveraged loans, with two circa-'''5bn sales as the corporate credit market improved. The bank also, apparently, got a full price for its loans by offering private equity buyers low-cost financing for the deals.[37] The comments followed a report that Deutsche Bank was getting set to unload several billion dollars in loans. The deal, which the Financial Times said could be announced this week along with the bank's earnings release, would mark the third major sale this month of so-called leveraged loans, which are used to finance equity buy-outs. It would also be the first in Europe, it added.[38]
Deutsche Bank's investment bank, run by Anshu Jain and Michael Cohrs, accounted for almost half of 2007 earnings and may report a pretax loss of 903 million euros for the first quarter, according to the analyst survey.[11] "I think the worst has happened in the first quarter," said Georg Kanders, analyst with WestLB Research. "What we have learned from the Credit Suisse results is that the market situation was completely dislocated, because normal hedges didn't work anymore, nobody wanted to take cash positions, derivatives were quite cheapthat's why we will also see this loss at Deutsche Bank."[31] Net revenues more than halved, from '9.6bn in the first quarter of 2007 to '4.6bn, as some of Deutsche Bank's business units shrank as a result of the worsening credit crisis.[26]
"Even though we expect a weak quarter, Deutsche Bank should be able to get through the credit crisis relatively well, especially without the need for a capital increase,'' Andreas Weese, a Munich-based analyst at UniCredit SpA, who recommends investors buy the stock, said in a note. UBS is seeking 15 billion francs from investors to repair its balance sheet after already receiving 13 billion francs last month from Government of Singapore Investment Corp. and an unidentified Middle Eastern investor. The Zurich-based bank said last week that it will announce job cuts "across the board'' at its securities unit in May and no longer plans to "offer everything to everyone in investment banking.''[11]
A year ago, Deutsche Bank earned 2.1 billion euros, or nearly $3 billion in the quarter.[25] To date, Deutsche Bank has had to write down approximately 5 billion euros ($7.8 billion).[2]
BERLIN (AFP) — Deutsche Bank, the biggest German bank, is planning a capital increase to raise up to 17 billion euros (27 billion dollars), news weekly Der Spiegel reported in its Monday issue.[38]
The impairment was partly offset by 854 million euro gains from the sale of industrial holdings in Daimler, Allianz (nyse: AZ - news - people ), Linde and others. Including these gains Deutsche's pretax loss amounted to 254 million euros compared to a gain of 3.163 billion a year earlier.[7] The loss of 131 million euros ($204 million) came even after the bank realized a gain of more than $1 billion on the sale of stakes in Daimler, Allianz, and the Linde Group.[25]
Net profit after minority holdings fell to a loss of 131 million euros from a profit of 2.121 billion in the same period a year earlier, the bank said in a statement.[22] First-quarter operating profit fell to 1.8 billion euros from 2.9 billion euros a year ago, Allianz said. That missed analysts' 1.89 billion-euro median estimate. It previously said it expected as much as 400 million euros in further writedowns based on market prices at the end of January.[10] Allianz had been aiming to fatten operating profit -- it made almost 11 billion euros last year -- by an average 10 percent each year between 2007 and 2009. This would take it over 13 billion euros at the end of next year. The Munich-based group said its operating profit reached 1.8 billion euros in the first three months of the year. Chief executive Michael Diekmann has been credited with turning around the group since taking charge after what his predecessor Henning Schulte-Noelle described as the "terrible year" of 2002 that forced his own departure. Diekmann has since boosted the profitability of its insurance work and cut costs to pull Dresdner out of the red.[6] In February, it reported record net profit of nearly 8 billion euros for 2007. The Munich-based group said its net profit in the first three months of the year came to about 1.1 billion euros, and its operating profit to 1.8 billion.[28]
Munich-based Allianz said net profit slumped in the three months of the year by 66 per cent to 1.1 billion euros, also warning that the financial fallout from the U.S. subprime market crisis could place at risk targets for next year.[30] During the quarter, the company wrote down 1.8 billion euros ($2.8 billion) on leveraged loans, but as of the end of March still has 33 billion euros ($51.4 billion) exposure. On Tuesday there was also no mention of its target of 8.4 billion euros ($13.1 billion) pre-tax profit for the year.[12] The bulk of first-quarter markdowns were likely made on 36.2 billion euros of leveraged loans held at the end of 2007, said Derek Chambers, an equity analyst at Standard & Poor's Equity Research in London. The loans accounted for the biggest chunk of unsold LBO debt worldwide, according to a BNP Paribas SA report this month. Banks are taking advantage of an increase in the price of LBO loans this month to reduce the $95 billion overhang of debt on their books.[11]
Di Iorio also said Deutsche sold smaller tranches of loans of 1.4 billion euros related to leveraged buyouts (LBO) since the end of the first quarter.[8] International media had reported in the past weeks that Deutsche is preparing to sell up to $20 billion of debt related to leveraged buyouts to private equity firms. Deutsche's Private clients and Asset Management division posted a pretax rise to 492 million from 481 million in the first quarter.[7] International media had reported in the past weeks that Deutsche is preparing to sell up to $20 billion of debt related to leveraged buyouts to private equity firms. Deutsche reduced its net sub-prime exposure in CDO businesses to 900 million euros at the end of March compared 1.2 billion at the end of the December.[20]
Revenues in Origination -Debt were negative 1.4 billion euros, compared to revenues of 401 million euros in the prior year quarter, primarily reflecting the mark-downs in leveraged finance of 1.8 billion euros.[4] During the first quarter, the company recorded a tax benefit of 113 million euros, versus tax expense of 1.0 billion euros in the prior year quarter.[4]
Allianz estimates an operating profit of a solid 1.8 billion euros for the first three months of 2008, after 2.9 billion euros in the first quarter of 2007.[36]
Compensation and benefits declined 32 percent to 2.934 billion euros, while general administrative expenses were up 2 percent at 1.948 billion. Deutsche said net revenues at its Corporate and Investment division declined steeply to 1.5 billion euros from 6.7 billion as pretax turned to a loss of 1.354 billion euros from a profit of 2.395 billion due to the the mark-downs.[20] Deutsche targets a sustainable annual RoE of 25 percent excluding significant one-offs. Deutsche said pretax at its Corporate and Investment division declined steeply to a loss of 1.354 billion euros from a profit of 2.395 billion due to the the mark-downs.[7]
Pretax earnings fell to a loss of 254 million euros from a profit of 3.163 billion euros, it added.[22]
The banking division, mainly consisting of Dresdner, is set to report a loss of 470 million euros, reversing a 625 million-euro profit, analysts estimate. Reaching the 2009 target of 10 percent operating-profit growth is "still feasible, even though this will become harder, the longer the financial crisis will last,'' Allianz Chief Financial Officer Helmut Perlet said in today's statement.[10] Net after minorities turned to a loss of 131 million euros from a gain of 2.121 billion, weighed down by 2.7 billion in mark-downs due to the financial crisis.[7]
The Frankfurt-based bank said it posted a net loss of 131 million euros (205 million dollars) during the first three months of the year, dramatically reversing a 2.12-billion-euro-profit for the same period of 2007.[1] Lender IKB made a 965bn euros first half loss, after similar difficulties. IKB lost heavily on its portfolio investments, many of which were based on securities backed by sub-prime U.S. mortgages. These were loans made to American borrowers with dubious credit histories, and there has been a high default rate on these sub-prime mortgages since the summer of 2007. IKB was one of the first German banks to be hit when this sector of the U.S. market collapsed last year, and it has since had to be bailed out by three government loans.[27] Banks around the world have now written off more than $300 billion in dud loans since the credit crisis began last year with the collapse of the U.S. subprime securities market.[17]
The Frankfurt-based banking division marked down almost 900 million on credit securities in the first quarter related to the U.S. subprime mortgage market meltdown, adding to the 1.3 billion it wrote down last year.[39] Global Transaction Banking pre-tax profits climbed 17% year-over-year to 250 million euros in the quarter, despite a weak U.S. dollar and lower interest rates in the U.S. In Private Clients and Asset Management, pre-tax profits were 492 million euros, up 2% from last year.[4] Global Transaction Banking and Private Clients and Asset Management produced pre-tax profits of 742 million euros, 7% higher than last year, despite much more challenging market conditions.[4]
Deutsche also reported a pretax-loss of 254 million euros during the first three months of 2008, compared to a more than 3 billion- euro pretax profit in the same period last year.[1]
Deutsche Bank reported a net loss of '131m compared with a net profit of '2.1bn a year earlier.[33] The company reported a first-quarter net loss of CHF 2.15 billion or CHF 2.10 per share, compared to a profit of CHF 2.73 billion or CHF 0.49 per share reported a year earlier.[4] Allianzs U.S. units include Bill Gross Pimco, one of the worlds largest bond managers; Firemans Fund; Oppenheimer Capital; and fund managers Nicholas-Applegate and RCM Capital. In a statement, Allianz said it predicted its operating profit for the January-March period would be 1.8 billion (US$2.8 billion) compared with 2.9 billion a year earlier, and said it expects net profit to reach 1.1 billion (US$1.7 billion) in the first three months of the year compared with 3.2 billion a year ago. The company will publish its complete first-quarter results on May 9.[40]
Asset management revenues were down €41m on the Q1 2007. Deutsche Bank put this down to: "the impact of deteriorating market conditions on asset based fees, partly offset by higher performance fees due to strong sector and industry selections." Elsewhere, Allianz announced it expected an operating profit of €1.8bn when it released its Q1 figures on 9 May. It said this would include write downs of €0.9bn and come in €1.1bn lower than results for the first three months of 2007.[35] "Recently, however, we have seen some encouraging developments. In April, financial markets have shown signs of stabilising, and valuations of asset classes are attracting growing interest from investors," he said. Deutsche Bank said last month its full-year forecast of pretax profit of ' 8.4bn, which excludes one-time items, was at risk because of further writedowns and declining securities revenue.[26]
It also emerged last week that Deutsche Bank "would look at" Citigroup's German operations, should the U.S. financial giant put the division on the market. The bank is set to release its first-quarter results tomorrow, when it is expected to reveal a €2.5 billion asset writedown but that its Tier 1 capital, which is the amount of equity and reserves a lender must keep on its balance sheet, will be in line with forecasts at between 8 per cent and 9 per cent.[41] However Keefe Bruyette and Wood analyst Matthew Clark warned that there was little in the Deutsche Bank results to "spur enthusiasm." Though the company's tier 1 capital ratio of 9.2% was in line with expectations, meaning it was unlikely to need a rights issue similar to that of the Royal Bank of Scotland or UBS, its exposure to assets linked to the collapse of the U.S. mortgage market had only fallen slightly. "Deutsche Bank saw less of a reduction in its 'risky' exposures than many peers during the quarter and, at first glance, do not appear to have marked their positions as severely as some peers," Clark wrote in a note.[12]
In April, Deutsche Bank had given fair warning to markets, saying it expected at least 2.5 billion in write-downs in the first quarter, slightly less than what it reported.[24] "We suspect investors would have liked to see a greater risk reduction." Deutsche Bank came through the early days of the credit crunch better than many of its competitors, and has been one of the few banks able to consider acquisitions. It has expressed interest both in Postbank, the banking subsidiary of Deutsche Post, as well as some of Citigroup's German operations. However the first quarter revealed a number of chinks in its armor, including in its leverage finance portfolio.[12] The structure of the sales was designed so that Deutsche could avoid booking losses on the loans, and would be protected from further falls in value. What's the new slab of capital needed for then? Deutsche Bank has got its eye on acquisitions. Last week, the bank expressed an interest in picking up parts of Citi's European business, were they to come up for sale as part of the U.S. bank's review. This week, Deutsche is apparently intent on putting its position as a credit crunch survivor to good use in consolidating in Europe. Reuters at the weekend quoted Juergen Fitschen, head of German retail banking at Deutsche, saying he would favour deals among Germany's four big commercials banks to form two larger groups that could better compete internationally. It's mix and match between Deutsche, Allianz's Dresdner, Commerzbank and Deutsche Postbank. The former pair were in the frame as the buyers in this hypothetical German realignment.[37]
Deutsche Bank partially offset the losses with 854 million euros in gains from the sale of shares in the German auto manufacturer Daimler, insurer Allianz and industrial gas group Linde.[13] Revenues in Corporate Investments climbed 61% to 705 million euros from 438 million euros a year ago, mainly driven by gains on the sale of shares in Daimler AG, Allianz SE and Linde AG during the quarter, offset by mark-downs.[4]
Corporate and Investment Bank Group division recorded first-quarter net revenues of 1.54 billion euros, down 77% from 6.73 billion euros a year ago.[4] A breakdown of the results showed that the Corporate and Investment Bank unit, normally a strong contributor, saw revenues plunge 77 percent to 1.5 billion euros.[13]
The Frankfurt-based bank, run by Chief Executive Officer Josef Ackermann, said April 1 it would book about 2.5 billion euros in markdowns in the quarter, bringing total losses to 4.8 billion euros since the start of last year.[11] Net interest income after provision for credit losses climbed to 2.56 billion euros from 1.96 billion euros last year.[4] In Private Clients and Asset Management, net revenues rose a mere 1% to 2.45 billion euros from 2.43 billion euros last year.[4] Net revenues for the quarter amounted to 4.62 billion euros, down from 9.58 billion euros in the same period prior year.[32] The company's total quarterly net revenues plunged to 4.62 billion euros from 9.58 billion euros in the same period prior year.[4]
Sales & Trading -Equity generated revenues of 745 million euros, down 57% from 1.7 billion euros in the previous year, due to significantly lower revenues in equity derivatives trading.[4] Revenues in Sales & Trading -Debt and other products were 1.3 billion euros, down from 3.4 billion euros last year.[4]
Evidence of market ructions upsetting the bank's day-to-day business was clearly visible in the investment bank division, whose revenues dived to '880m from '6.1bn in first quarter of last year, as a result of lower trading in debt products.[33]
In the first quarter, BankAtlantic Bancorp reported net loss of $23.4 million or $0.42 per share, compared to net income of $5.7 million or $0.09 per share in the previous year.[16] In the first quarter, net interest income rose 30 per cent to 2.676 billion as loan loss provisions were up 16 per cent to 114 million.[42]
Despite the loss, and the write-downs, the figures pale in comparison to other banks, which have seen their write-downs balloon. The largest was reported by Switzerlands UBS AG earlier this month which said it saw losses and write-downs of approximately US$19 billion (12.16 billion) in the first quarter, bringing its tally to US$37.4 billion (23.9 billion).[24] Deutsche Bank seems set to announce a loss for the first quarter of 2008, Bloomberg reports.[21] Most of the first-quarter writedowns come from Deutsche Bank's exposure to leveraged finance, which stood at '33.1bn at the end of the first quarter.[33]
Chief executive Josef Ackermann said considering financial markets conditions in the months January through March were 'the most difficult in recent memory' the bank's performance in the first quarter was'solid'. He said the near-term outlook is highly uncertain but added that Deutsche is 'well positioned to emerge stronger than ever from the crisis'. 'We are equally determined to meet near-term challenges and to take advantage of longer-term opportunities,' he said in the interim report.[20] Commenting on the results, Dr. Josef Ackermann, Chairman of the Management Board and the Group Executive Committee, stated, '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.[4]
The first-quarter results were affected by $13.9 billion of writedowns and credit costs on sub-prime related exposures. Another peer, Zurich, Switzerland-based UBS AG (UBS) is due to announce its first quarter financial results on May 6.[4]
ROCHESTER, N.Y. (AP) _ Corning Inc. said Tuesday its first-quarter profit more than tripled to more than $1 billion, exceeding Wall Street's expectations on soaring demand for glass used in flat-screen televisions and computers. BERLIN (AP) _ German insurer Allianz SE said Tuesday that its first-quarter profit slid 66 percent because of fallout from the global credit crisis and warned it will report write-downs of nearly $1.4 billion at its Dresdner Bank unit.[43] Allianz added to the gloom in the German financial sector after warning today that its first-quarter net profits will fall short of analyst forecasts to barely one third of last-year'''s level, on the back of nearly '''1bn ($1.6bn) in fresh writedowns at its Dresdner Bank unit.[44]
Allianz had warned in March that the value of bond investments linked to the U.S. housing market - held by its banking unit Dresdner - could be cut further if the U.S. housing slump persisted and investor sentiment remained negative. It has now said a 900m euros writedown would "have to be accrued in the area of structured financial products of Dresdner Bank due to the ongoing financial market crisis".[27] The latest writedowns bring Dresdner Bank's overall bill from the global market turmoil to about 2.5 billion. Allianz said its medium-term targets, while still feasible, would become harder to reach the longer the financial crisis lasts.[28] Operating profit would drop to 1.8 billion euros from 2.9 billion euros. The company said in a statement that it was sticking to its targets for 2009 for now but added that "this will become harder, the longer the financial crisis will last."[14] "In this difficult market environment, an operating profit of almost 2 billion (US$3.1 billion) underlines our sustainable underlying profitability. We consider our medium term targets for 2009 to be still feasible, even though this will become harder, the longer the financial crisis will last," said Allianz board member Helmut Perlet.[40] The group said it had decided to keep realised gains from investments low during the quarter because of the weak investment markets. "In this difficult market environment, an operating profit of almost ' 2bn underlines our sustainable underlying profitability," said CFO Helmut Perlet. "Hence we consider our medium-term targets for 2009 to be still feasible, even though this will become harder the longer the financial crisis will last."[26]
First-quarter operating profit fell to 1.8 billion from 2.9 billion a year ago, Allianz said. It previously said it expected as much as 400 million in further writedowns in the quarter, based on market prices at the end of January. [39] Net profit is expected to reach about 1.1 billion euros compared to 3.2 billion a year earlier, according to preliminary figures.[29] Commission and fee income declined 14 percent to 2.531 billion euros, while trading posted a loss of 1.578 billion compared to a gain of 3.973 billion a year earlier.[20] Net income declined to about 1.1 billion euros ($1.7 billion) from 3.2 billion euros a year earlier, the Munich-based insurer said in a statement today.[10] The Munich, Germany-based company expects to report first-quarter net income of nearly 1.1 billion euros, which is clearly below prior year's net income of 3.2 billion euros.[16]
Allianz fell 1.57 euros, or 1.2 percent, to 129.22 euros today. The company has lost 13 percent this year, valuing it at 58.5 billion euros.[10] Last year's earnings were swelled by 2 billion euros from selling stakes in companies. Allianz's earnings have been eroded by Dresdner since its 23.5 billion-euro purchase in 2001.[10] Total non-interest expenses fell 25% to 4.76 billion euros from 6.32 billion euros last year.[4]
Of the 2.7 billion euros, some 1.77 billion euros affected leveraged finance loans and loan commitments, while another 885 million euros was for commercial real estate and residential mortgage-backed securities, or RMBS.[2] The company noted that the decrease included net mark-downs of 885 million euros on residential mortgage-backed securities and commercial real estate loans.[4]
On a sequential basis, the company slipped to a loss from a net income of 969 million euros, and net income attributable to shareholders of 953 million euros, or 1.93 euros per share reported in the fourth quarter.[4] The figures were slightly better than what the market had been expecting, but were helped by an unexpected boost of 854 million euros ($1.3 billion), after the company sold shares in Allianz, Linde, and Daimler. "Nevertheless, relative to the environment and the industry, this is a solid performance."[12]
Deutsche Bank shares closed down less than 1 percent at 76.50 euros ($119.63).[2] At 2.28 p.m. Deutsche Bank (nyse: DB - news - people ) shares were down 0.12 euros or 0.16 percent at 76.65, outperforming the market.[7]
Deutsche Bank rose 1.3%, in Frankfurt; Credit Agricole (other-otc: CRARF - news - people ) gained 1.6%, in Paris; Societe Generale (other-otc: SCGLY - news - people ) lifted 1.4%, to 76.60 euros ($119.68), also in Paris.[31]
To be sure, Deutsche Bank's write-downs pale in comparison to the huge hits taken by other European banks, in particular UBS, which has written down nearly $40 billion. The German bank did warn earlier this month that it would need to take a significant write-down for the quarter.[25] Deutsche Bank is set to raise €9 billion (£7 billion) by issuing bonds to finance an expected acquisition spree after Josef Ackermann, the chairman at Germany's largest lender, reiterated his interest in buying Postbank, majority owned by Deutsche Post. The bank will seek investor approval for the bond issue, which is just below Deutsche's total share capital of €13.5 billion, at its annual meeting on May 29. Last week Mr Ackermann said that the bank was seeking to boost its retail operations and was still interested in buying Postbank, which apparently was in talks with Commerzbank, Deutsche's rival.[41] Der Spiegel said Deutsche Bank aimed to free up cash for acquisitions to take advantage of a drop in bank share prices due to the crisis in the U.S. subprime lending market. Deutsche Bank said Friday it would be interested in acquiring the German activities of Citigroup if the U.S. banking giant wanted to sell them. The German bank's chief Josef Ackermann said earlier last week he wanted to bolster retail operations in Germany and reiterated an interest in Postbank, the German postal bank.[38]
Josef Ackermann, chairman, Deutsche Bank management board, commented: "In the month of March, pressure on the banking sector was more intense than at any time since the current credit downturn began. Inevitably, this left its mark on Deutsche Bank's results. Ackermann continued: "Nevertheless, relative to the environment and the industry, this is a solid performance."[35]
Jeffrey Goldfarb on Breakingviews.com notes that revenue in Deutsche Bank's corporate banking and securities division fell sharply and that the bank remains highly leveraged. "Dodging subprime, though commendable, has not been enough to keep the bank out of trouble," he says. "It's starting to look as though Deutsche could be forced to raise capital, just as so many of its peers are doing." Analysts with Morgan Stanley said that the credit crunch was still in its early days, warning that some big banks would need to raise additional capital and cut dividends. "We think we are only in the third inning of the credit cycle and expect this credit cycle will be worse than 1990-91," they wrote.[25] Deutsche Bank'''s corporate banking and securities arm has made a second quarterly loss in nine months on the back of writedowns that were slightly higher than it warned at the start of this month.[45]
The writedown is more than double the 400m euros estimated by Allianz at the beginning of the year. At Deutsche Bank, its losses would have been worse had the bank not sold investments in firms such as carmaker Daimler worth 854m euros.[27] Deutsche Bank generated ' 854mn from selling shares in companies including Daimler, Allianz, and Linde. It also booked a tax gain of ' 113mn in the quarter. It paid ' 1bn a year earlier.[26] Deutsche Bank shares closed up 0.8% at '76.77. They have lost 14% in the year to date, valuing the company about '40bn.[33]
Deutsche targets a sustainable annual RoE of 25 percent excluding significant one-offs. Deutsche's tier 1 capital ratio stood at 9.2 percent and the bank said it set aside a dividend accrual equivalent to 25 percent of the 2007 dividend of 4.50 per share. This indicates that it plans to pay a similarly high dividend for the current year.[20] The paper's look at an AGM agenda suggests that Deutsche will be seeking permission to issue new shares worth '''4bn, in addition to a '''4bn share sale approved two years ago. Another '''9bn could be raised through issuing participation rights and bonds, it said. This is not another beleaguered bank looking to bolster its ailing balance sheet.[37]
The new regime has something of a military feel, and with good reason: Deutsche Bank’s chief executive Josef Ackermann — who is paid € 12-million a year — is a reserve colonel in the Swiss Army. One of his recent decisions was to hire General Ulrich Zwygart, in charge of Swiss military training, as managing director and global head of learning and development of Deutsche Bank in London, raising fears among the few remaining overweight Deutsche executives that the bank might be planning to introduce a boot camp. It has since emerged that they will instead be taught “intelligent leadership”, drawing on crises in battle and in civilian life.[46] Deutsche Bank announced that it was posting losses for the first time in five years.[18] In October last year, Deutsche Bank revealed a 2.2bn-euro exposure to U.S. sub-prime debt.[27] FRANKFURT - Germany's Deutsche Bank is considering bidding for parts of the European business of U.S. bank Citigroup Inc, the Financial Times Deutschland reported, citing financial sources.[47] Citigroup spokeswoman Christina Pretto declined to comment, citing a policy against commenting on rumours or speculation. Deutsche's strategy department was preparing for a possible auction as Citigroup chief Vikram Pandit was reviewing the company's business in Germany, the paper reported on Thursday in a preview of its Friday edition. The paper said it was not clear whether Pandit would add further parts of its European business in any sales process. "That would then be especially interesting for Deutsche Bank," the paper quoted a person familiar with the matter as saying.[47]
In February, Deutsche Bank reported a 48% drop in profit for the last quarter of 2007.[27]
On per share basis, quarterly loss was 0.27 euro, compared to profit of 4.28 euro in the previous year quarter.[4] The company's quarterly loss from continuing operations was $24.6 million or $0.44 per share, compared to a loss of $2.2 million or $0.04 per diluted share in the year-ago quarter.[16]
Analysts expect the company to report a loss of $4.87 per share on negative revenues of $2.39 billion for the quarter.[4]
Reflecting fallout from the global financial crisis, quarterly revenue tumbled 52% to €4.6 billion from €9.6 billion, and the bank swung to a trading loss of €1.58.[23] The bank said revenue from market trading and debt dived by 61 per cent to 1.3 billion euros.[1] Sequentially, net revenues declined from 7.29 billion euros recorded in the fourth quarter.[4]
Including 2.9 billion euros in gross mark-downs booked in the first quarter, exposure on leveraged finance stood at 30.2 billion euros at the end of March.[20] Total non-interest income in the quarter plunged to 1.94 billion euros from 7.52 billion euros in the previous year.[4] Commissions and fee income declined to 2.53 billion euros from 2.93 billion euros a year earlier.[4]
The bank may announce another 2.1 billion euros in writedowns before tax in addition to the 2.5 billion euros it already reported, London-based JPMorgan analyst Kian Abouhossein said in a note to investors today.[11] Some four billion euros are expected to be raised by the sale of 55 million new shares.[38] NEW YORK (Reuters) - Countrywide Financial Corp (CFC.N), the largest U.S. mortgage lender, posted a surprisingly large $893.1 million first-quarter loss on Tuesday, taking more than $3 billion of charges for write-downs and bad loans as the housing slump deepens.[48] The FINANCIAL. BAKU. The aggregate assets of the Azerbaijani banks increased by AZN 690.2 million (10.3%) to AZN 7,415.91 million (over $8.9 billion) in Q1, 2008.[36] Net gains on financial assets available for sales climbed to 683 million euros from 234 million euros a year ago.[4] Asset and wealth management achieved flat pretax profit of 188 million euros, while private and business clients improved pretax profit 11 percent to 304 million euros and gained 182,000 new clients on a net basis.[20]
The insurer has said it aims to increase operating profit by an average 10 percent in 2008 and 2009. The Munich-based group said that its net profit in the first three months of this year came to about €1.1 billion and its operating profit to €1.8 billion.[3] Germany's largest banks may announce further markdowns of ' 10- 12bn for the first quarter, Standard & Poor's said in a report today. Full-year pretax earnings for the industry this year could decline by as much as 20 percent on average, S&P; said.[26] The bank took a total write-down of '2.7bn on leveraged loans, commercial real estate and residential mortgages in the first quarter.[26] Most of the losses were on leveraged loans, commercial property and mortgage-backed securities. German insurer Allianz expects its banking offshoot Dresdner, which includes Dresdner Kleinwort, to write down €900m in the first quarter.[49]
Munich-based Allianz warned it would report '900mn of write-downs in the first quarter on structured products held by Dresdner Bank.[26]
April 29 (Bloomberg) -- Allianz SE, Europe's biggest insurer, said first-quarter profit fell 66 percent on writedowns at the Dresdner Bank unit tied to the credit-market collapse.[10] "Credit markets deteriorated further and the higher writedowns at Dresdner are no surprise,'' said Thilo Gorlt, an analyst at BHF Bank in Frankfurt who recommends buying Allianz shares. "What's more important is that they didn't scrap their medium-term profit target. They have a chance to catch up.''[10]
Shares in the bank shed 0.47 percent to 76.41 euros in midday Frankfurt trade while the Dax index of leading shares was down 0.57 percent overall. Analysts said the results were better than the market had expected but a local trader nonetheless commented that they still looked "pretty bad" and predicted they would put pressure on the bank's shares all day.[13]
The bank's after-minorities result was a loss of 131 million euros ($204.7 million) in the January-March period.[2] The quarterly loss was the third straight for Countrywide, which agreed in January to be acquired by Bank of America Corp (BAC.N) for about $4 billion.[48] Last week Credit Suisse reported a quarterly loss after taking 5.3 billion Swiss francs ($5.1 billin) in new write-downs.[12]
The world's biggest banks and securities firms have reported credit losses and writedowns of about $310 billion linked to the U.S. subprime meltdown, data compiled by Bloomberg show.[11] Deutsche Bank's most profitable lines have been in the trading of debt securities, a business that continues to feel the impact of the credit crunch.[25] The corporate and investment bank - including Deutsche Bank's most lucrative trading operations - saw net revenues plunge from '6.7bn to '1.5bn.[26] Corporate and Investment Bank division's revenues fell 77%, severely affected by the deteriorating market conditions, while Private Clients and Asset Management division reported a 1% rise in net revenues, and revenues in Corporate Investments climbed 61%.[4]
Revenues in Asset and Wealth Management declined 1% to 1.0 billion euros, on modest declines in portfolio/fund management revenues, while revenues in Private & Business Clients rose 2% to 1.5 billion euros.[4] Exposure on other U.S. residential mortgage business was down to 1.7 billion euros from 3.6 billion.[20]
Deutsche had announced April 1 that it anticipates first-quarter mark-downs of about 2.5 billion euros.[20] In early April, UBS took an additional 19 billion euros ($18.3 billion) in write-downs.[12]
International media had reported in the past weeks that Deutsche is preparing to sell up to $20 billion of LBO debt. Deutsche's gross exposure to leveraged loans and loan commitments declined to 33.1 billion at March 31, from 36.2 billion at the end of 2007.[8] The bank will mark down the value of leveraged loans, commercial real estate and residential mortgage backed assets, the majority of which are "Alt-A" home loans -- U.S. mortgages that are less risky than sub-prime but normally are given to people without credit histories.[41] The bank said the write-downs were net of hedges, taxes and fees, and related to the dropping value of "leveraged loans and loan commitments, commercial real estate and residential mortgage-backed securities" of predominantly Alt-A positions — which are less risky than subprime loans.[2]
Germany's largest bank had a first-quarter net loss of '141mn after earning '2.12bn a year earlier. [26] Deutsche Bank's first-quarter loss was lower than the consensus estimates of analysts.[26] In a conference call on the earnings, Deutsche Bank's finance director, Anthony Di Iorio, told analysts that the bank could not give a forecast for full-year results because of the turmoil in the markets.[25]
To date, Deutsche Bank has had to write down approximately 5 billion (US$7.8 billion).[24] Deutsche Bank shares were down 1.4 percent to 75.70 (US$118.30) in Frankfurt trading.[24] Shares of Deutsche Bank, which are down about 33 percent over the last 12 months, fell 1.2 percent in Frankfurt afternoon trading.[17]
"Deutsche Bank is dependent on the market," Dieter Ewald, a fund manager with Frankfurt Trust, which owns shares in Deutsche Bank, told Reuters. "Are they in a strong position here? I would put a question mark over this."[25] "The issue is not the writedowns," said Dieter Ewald, a fund manager with Frankfurt Trust, which owns shares in Deutsche Bank.[5]
"In the month of March, pressure on the banking sector was more intense than at any time since the current credit downturn began. Inevitably, this left its mark on Deutsche Bank's results."[22] Deutsche Chief Executive Josef Ackermann said on Wednesday the bank would play an active role in the consolidation of the German banking industry should opportunities arise that made sense and created value for shareholders.[47]
'Investors continue to be cautious,' Ackermann added. Deutsche swung from a firstquarter profit of €3.16bn in 2007 to a loss of €254m this year.[49] Profit surged 80 percent a year ago as Allianz sold stakes in companies including Bayerische Motoren Werke AG and Munich Re. Gains from investments this year were "consciously kept low based on disadvantageous stock prices,'' Allianz said today.[10] NordLB's Constantin Rohrbach said that while the figures may disappoint at first glance, Allianz is 'on the right track'. He expects the group to divest Dresdner's ailing investment banking operations in the course of this year. 'If Allianz successfully restructures its banking operations and the capital markets recover in the second half of this year, the German insurance market leader will meet its 2008 goals,' Rohrbach said in a note.[29] Allianz is now planning to break up Dresdner Bank in a move that would pave the way for a sale of investment banking laggard Dresdner Kleinwort, which is partly behind the problems that resulted in the writedowns.[28]
The Munich-based company, Europes biggest insurer by gross premiums and the owner of Dresdner Bank AG, said the write-downs would "have to be accrued in the area of structured financial products of Dresdner Bank due to the ongoing financial market crisis."[40] "The higher-than-expected writedowns at Dresdner Bank and the uncertainties over the outlook will weigh on the share," said Heino Ruland, market analyst at FrankfurtFinanz.[28]
On average, 13 analysts polled by First Call/Thomson Financial estimated loss per share of $0.10 in the latest quarter.[16] Analysts anticipated first-quarter revenues of $80.73 million. BankAtlantic declared quarterly cash dividend of $0.005 per share to all shareholders of record of its Class A and Class B Common Stock on April 4, 2008.[16]
Revenues for the quarter fell 48% to $13.2 billion from $25.46 billion in the same quarter of last year.[4] Quarterly net revenues fell 73% to CHF 3.095 billion from CHF 11.620 billion recorded in the previous year.[4]
Net income declined to about 1.1 billion ($1.7 billion) from 3.2 billion a year earlier, the Munich-based insurer said in a statement today.[39] The company's quarterly net interest income fell to $48 million from $52.1 million in the comparable period last year.[16] In the latest quarter, BankAtlantic Bancorp's income before provision for loan losses and income taxes rose to $14.9 million from $8.3 million in the prior year.[16] Non-interest income for the quarter inched up 1.4% to $35.6 million from $35 million a year earlier.[16]
The provision for loan loss in the quarter was $42.9 million or 3.70% of average loans.[16]
The banks after-minorities result was a loss of 131 million (US$204.7 million) in the January-March period.[24] The German bank also succumbed to the same fate as several rivals in posting a net loss at group level.[45] The loss was due to writedowns amounting to a total of '''2.7bn worth of assets that have been hit by the financial turbulence embroiling the world's banks.[34] Hard times have come for some of the world’s most cosseted financial workers with a crackdown on expenses at Deutsche Bank.[46] Taxi trips during a bus or Tube strike will be repaid only with the explicit approval of a banker’s line manager, and similar permission from on high is required if lunch with a client is going to cost more than € 65 per person (the threshold may have to be raised a bit in London). If this sounds a world away from the banker’s archetypal business trip of penthouse suites and VIP lounges, it gets worse: Deutsche Bank employees arriving on an early flight are now barred from expensive early hotel check-ins and instead are expected to shower and shave at the airport. It is all a far cry from the advertising material on the website of the bank. “Motto: A Passion to Perform” — which profiles the relaxed but productive daily routine of some of its 73000 staff. Ursula, from Legal Entity in Frankfurt, is shown casually picking up her café latte in the morning and looking forward to the bank’s annual ski-season party.[46] While Hbos looked poised to become the next UK bank to tap investors for cash, Germany's banks were also in the spotlight. A report over the weekend in Der Spiegel posited that Deutsche Bank would ask its shareholders to approve plans to raise '''17bn.[37] A Deutsche Bank spokesman refused to comment on the bond issue or the lender's acquisition strategy.[41] A spokesman for Deutsche Bank declined to comment on the report on Thursday.[47] Deutsche Bank raised its writedowns to €2.7bn from a forecast €2.5bn at the start of the month.[49] On April 1, Deutsche Bank had said it would book about ' 2.5bn in markdowns on top of ' 2.3bn in 2007.[26] Going ahead, Deutsche Bank noted that the near-term outlook is highly uncertain.[4]
In a call with investors, Anthony di Iorio, Deutsches chief financial officer, said the bank could not make a full-year forecast. "These are very uncertain times," he said.[17]
UBS, Citigroup Inc. and Merrill Lynch & Co. are among banks that sought about $217 billion from investors to replenish capital.[11] Total losses from the crisis among banks exceed $300 billion since the beginning of the crunch last summer.[21]
HBOSs rights issue, which it said had been fully underwritten, will offer two ordinary shares for every five existing ordinary shares at a price of 275 pence each. It will also cut its dividend. Last week, Royal Bank of Scotland announced a rights issue of 12 billion to replenish its own capital.[17]
At 12.35 p.m. Allianz shares were down 0.79 euros or 0.60 percent at 130.00, while the DAX had dropped 42.03 points or 0.60 percent 6,882.83. Allianz is scheduled to publish its complete first-quarter results May 9.[29] NEW YORK (Reuters) - Confidence in Merck & Co's (MRK.N) earnings prospects withered on Tuesday, along with its stock price, after U.S. regulators surprisingly rejected the drugmaker's treatment to raise levels of "good" HDL cholesterol. Shares of Merck, already battered by a failed trial earlier this year of its blockbuster Vytorin cholesterol drug, were swept as much as 10.8 percent lower in morning trading on Tuesday. They are down 36 percent for the year.[48]
Allianz fell 0.9 per cent to 129.65 as of 10.30am. The company has lost 12 per cent this year, valuing it at 58.6 billion.[39] Allianz said it is expecting an operating profit of ' 1.8bn in the quarter, down from ' 2.9bn a year ago.[26]
Two of London's largest German-owned investment banks today announced writedowns totalling €3.6bn (£2.8bn) as the credit crunch tightened even more severely in the first three months of the year. [49] Provision for credit losses increased to 114 million euros from 98 million euros a year ago.[4] The impairment was partly offset by 854 million euros gains from the sale of industrial holdings.[20]
Overall, the charges came to 2.7 billion euros, slightly higher than previously forecast. [22] In all, the charges came to 2.7 billion euros, higher than the April 1 forecast of about 2.5 billion euros.[13]
Over the third and fourth quarters, Deutsche wrote off a total €2 billion. [41] Deutsche had announced April 1st, that it anticipates first-quarter mark-downs of about 2.5 billion.[42]
Deutsche had been seen as one of the winners in the crisis that forced Swiss rival UBS and Royal Bank of Scotland to turn to shareholders to raise cash.[5] Despite the efforts of major central banks to reduce fears that a major financial institution will go bust, interbank interest rates show banks remain leery about lending to one another, said Simon Maughan, a banking analyst at MF Global Securities in London. "Theres limited transparency in whats going on" in the finanical system, he said.[17] The stock has declined 13 percent in the last sixth months, compared with a 20 percent drop in the 59-company Bloomberg Europe Banks and Financial Services Index.[11] However it has seen some encouraging developments recently, and financial markets have shown signs of stabilizing in April. The bank added that it continues to reduce risk exposures in critical areas, and that its exposure to subprime remains relatively modest.[4]
Billionaire investor Warren Buffett is providing some financial backing for candy maker Mars' $23 billion purc. [24] Last year's earnings were swelled by 2 billion from selling stakes in companies.[39] The investment-banking unit, which accounted for almost half of last year's earnings, reported a ' 1.6bn pretax loss, exceeding the ' 903mn loss forecast by analysts.[26]
Allianz dropped as much as 2.2 per cent in Frankfurt trading. Allianz's earnings have been eroded by Dresdner since its 23.5 billion purchase in 2001. [39] Allianz warned that net income would be only '1.1bn compared with '3.2bn in the same period in 2007. Its shares fell 1.9% to '128.28.[26] Net revenues more than halved, from '9.6bn in the first quarter of 2007 to '4.6bn.[33] PHOENIX (AP) _ Pinnacle West Corp. lost money in the first quarter because of swelling costs and a slumping real estate market, the power company said Tuesday.[43]
The public image of Europe’s largest car manufacturer was tarnished when it was revealed that a VW slush fund was paying for visits to brothels, Viagra tablets and the flights of escort girls for senior union officials. “Deutsche Bank does not approve of adult entertainment of any kind and will not repay such expenses,” says the new directive. Company credit cards, in other words, cannot be used to pay for visits to brothels or strip clubs, even if these are intended as bonding activities with clients. [46]
SOURCES
1. Global financial market turmoil hits Deutsche Bank's earnings - Business
2. The Associated Press: Deutsche Bank reports 1Q loss on $4.2 billion in write-downs
3. Deutsche loses as Dresdner imperils Allianz - Times Online
4. Hefty Mark-downs, Lower Revenues Drag Deutsche Bank To Q1 Loss - Update [DB] - RTTNews, Today's Top Stories, Global Newswires, ToDay's Top News,Global Business news .
5. Market crisis tips Deutsche Bank into red - washingtonpost.com
6. Allianz writedowns from crisis approach $4 billion | Reuters
7. ROUNDUP Deutsche Bank posts Q1 loss and moves away from FY pretax guidance - Forbes.com
8. Deutsche Bank CFO says cannot forecast FY result as markets unpredictable UPDATE - Forbes.com
9. HBOS, Deutsche write down more as banks bleed | Reuters
10. Bloomberg.com: Germany
11. Bloomberg.com: Germany
12. Deutsche Bank Sees Red - Forbes.com
13. AFP: Deutsche Bank drops 2008 targets after posting major loss
14. AFP: Financial crisis hits profits at German insurer Allianz
15. Allianz Q1 Results Hit By Banking Mark-Downs
16. RTTNews - Breaking News, financial breaking News, Positive EPS Surprises, Stock research .
17. Deutsche Bank posts first loss in five years - International Herald Tribune
18. Seeing Red: Deutsche Bank Posts First Losses in Five Years - International - SPIEGEL ONLINE - News
19. Market crisis tips Deutsche Bank into red : US Business
20. Deutsche Bank posts first quarterly loss in years as mark-downs weigh UPDATE - Forbes.com
21. Bobsguide - Deutsche Bank 'to post loss'
22. AFP: Deutsche Bank posts first quarterly loss in five years
23. Free Preview - WSJ.com
24. Deutsche Bank reports write-downs totaling 2.7 billion in 1st-quarter; 141 million net loss - International Herald Tribune
25. Deutsche Bank Swings to a Loss - Portfolio.com
26. Indiainfoline.com-Top stories,Leader speak,company news,sector news,Market talk,lifestyle,budget,market today,global indicators
27. BBC NEWS | Business | Deutsche writes down 2.7bn euros
28. Allianz: Goals Uncertain in Wake of Crisis - Companies * Europe * News * Story - MSNBC.com
29. Allianz Q1 net drops sharply on Dresdner mark-downs, low investment gains UPDATE - Forbes.com
30. (eca054) Allianz warns financial crisis could put targets at risk - Business
31. Better Times Ahead For European Banks - Forbes.com
32. RTTNews - Global Business News, Business Newswires, Business Articles, News Analysis.
33. Financial News and Information from Financial News Online US
34. Deutsche Bank makes first quarter loss
35. Global Pensions
36. The FINANCIAL, News That Makes Money, Business News & Multimedia - Allianz expects solid operating profit in first quarter
37. FT.com | Does Deutsche want a non-desperate capital boost?
38. AFP: Deutsche Bank planning major capital increase: report
39. ireland.com - Breaking News - Allianz first quarter profits down 66%
40. Insurer Allianz says it expects 1st-quarter write-downs of 900 million - International Herald Tribune
41. Deutsche Bank to raise €9bn for acquisitions - Times Online
42. ireland.com - Breaking News - Deutsche reports first loss in 5 years
43. Earnings roundup: Corning, Allianz | Chron.com - Houston Chronicle
44. Dresdner to dent Allianz profits
45. Deutsche returns to red after fresh hit
46. The Times - Deutsche does away with its legendary frills
47. Business Spectator - Deutsche Bank may bid for EU parts of Citi: report
48. Reuters Business Summary - washingtonpost.com
49. £2.8bn writedowns by German banks | This is Money
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