Trading gains boost Deutsche profits
Deutsche Bank reported a 77 per cent jump in net income to euro 1.026 billion in the first quarter of 2001, driven by an 86 per cent rise in trading income to euro 2.719 billion.
The strong performance will likely fortify the claims of Germany's biggest bank to be ready to enter the so-called bulge bracket of major international investment banks - a centerpiece of its corporate strategy.
The strong figures kick off the earnings season for the German financial sector and puts pressure on Deutsche's domestic rivals - Dresdner Bank, HypoVereinsbank and Commerzbank - to follow suit.
Dresdner, Germany's third-largest bank which also derives much of its profits from investment banking, is a takeover target for insurance giant Allianz, which launched a friendly takeover bid with plans to make Dresdner part of a huge financial conglomerate.
The move put pressure on Deutsche to respond by strengthening its insurance-sector ties and improving its retail-savings positioning as demand for investment products in Europe soars due to pension reforms.Deutsche's first-quarter statement gave no strategic comment and no outlook for full-year earnings.