Trading lifts Deutsche to record high
Deutsche Bank reported a record 2006 net profit of €6 billion today on the back of strong investment banking and trading income.
The results were better than the near €5.6 billion analysts had on average predicted, and well ahead of the previous year's €3.5 billion, thanks in part to a one-off credit caused by a change in German tax laws.
Fourth-quarter pretax profit was also strong, rising 81 per cent to €1.9 billion - well above the €1.67 billion on average predicted by analysts.
Investors and analysts welcomed the news, although some pointed to the bank's lack of a specific outlook for the year ahead and the fact that its equity trading business continued to lag major American rivals.
Deutsche Bank's stock rose at the market open but gains fizzled out in early trading and the stock was up 0.1 per cent earlier today, lagging the broader DJ Stoxx European banking sector index.
Deutsche Bank's revenue from trading equities rose by 23 per cent in the final three months of the year. Goldman Sachs reported a rise of 52 per cent rise in the same period.