Deutsche Bank should stand out from German domestic rivals when it reports results on Thursday by avoiding a quarterly loss, partly through a one-off gain.
Butanalysts say underlying profitability atthe bank is weak. Germany's banks have suffered from falling revenues and rocketing loan losses more than most of their west European peers because of high costs and low profitability in core operations such as retail banking.
"We continue to believe Deutsche Bank has substantialadvantages over its major local peers, with a stronger capital position, better profitability, stronger franchises and greater diversification away from the troubled domestic German banking market," analysts at Schroder Salomon Smith Barney said.
Last week, HVB Group kicked off the German bank's thirdquarter reporting season deeply in the red and with soaring loan losses. Commerzbank has warned it may make a loss this year, highlighting the industry's position as one of the least profitable in the developed world.