Deutsche Bank’s Q2 profits surge 67 per cent

German financial services major Deutsche Bank on Tuesday reported a 67 per cent jump in net income to 1.1 billion euros for the second quarter of 2009, bolstered by a good performance by its corporate and investment banking arm.

Germany's largest bank announced a net profit of 1.1 billion euros for the second quarter of 2009, compared with a 645 million euros profit a year ago. Provision for credit losses rose to 1 billion euros from 135 million euros a year earlier.

Deutsche Bank chief executive Josef Ackermann said the bank was ''well prepared" for an "uncertain environment" in 2009. Its investment banking arm alone made a pre-tax profit of 828 million euros in the quarter, compared to a loss of 311 million euros in the same period a year ago, Deutsche Bank said.

"We have taken good advantage of improved conditions in financial markets, but we have also reduced costs and balance sheet risks, and strengthened our capital and liquidity base, all of which leaves us well-placed to confront near-term challenges," Ackermann said in a statement.

Deutsche Bank's net revenues for the quarter stood at 7.9 billion euros, as compared to 5.4 billion euros in last year's period, including 176 million eurosof fair value losses on bank's own debt.

"The current quarter result was affected by the absorption of 1.4 billion euros of specific charges, mainly in non-interest expenses and provision for credit losses, which were in part counterbalanced by euro 758 million of specific positive revenue effects," the company said.

The company's net revenues in the corporate and investment bank were euro 5.3 billion in the latest quarter, up 84 per cent as against the second quarter last year.