Deutsche Bank, Germany’s biggest bank, returned to profit in the first quarter as a thaw in credit markets buoyed revenue from trading.
Net income was €1.19 billion, or €1.92 a share, compared with a loss of €131 million, or 27 cents, a year earlier, the Frankfurt-based bank said in a statement.
Deutsche Bank, which posted its first annual loss in more than 50 years in 2008, profited from record sales of corporate bonds and an improvement in credit markets.
Chief executive officer Josef Ackermann agreed to extend his contract by three years after leading the bank back to profit.
“Bond sales propelled earnings at Deutsche Bank and its competitors,” said Daniel Hupfer of M.M. Warburg in Hamburg, who helps manage about €31 billion, including Deutsche Bank stock.
“But we’re not through the financial crisis yet. Risks remain in banks’ books and Deutsche Bank could face further writedowns.”
Deutsche Bank rose 55 per cent so far this year in Frankfurt trading.
Deutsche Bank said late yesterday that Mr Ackermann (61) agreed to a request from the bank’s supervisory board to remain CEO until the annual general meeting in 2013.
The Swiss-born executive, who helped Deutsche Bank skirt the worst of the US subprime mortgage crash and resist taking government aid, had been scheduled to step down in May 2010.
“Looking forward, we see continued challenges, but also opportunities, in our business environment,” Mr Ackermann said in a letter to shareholders today.
Bloomberg
“Nevertheless, continued caution and vigilance will be essential”