Deutsche Bank Profit Falls 64%, Less Than Analyst Estimates, on Writedowns

From Bloomberg, today, July 31, 2008:

Deutsche Bank AG, Germany's largest bank, said second-quarter profit fell 64 percent as 2.3 billion euros ($3.6 billion) in writedowns led to a second straight loss at its securities unit.
Net income dropped to 649 million euros, or 1.27 euros a share, from 1.78 billion euros, or 3.60 euros, a year ago, the Frankfurt-based bank said on its Web site today. Earnings beat the 491 million-euro median estimate of 19 analysts surveyed by Bloomberg after a year-earlier tax charge wasn't repeated.
Chief Executive Officer Josef Ackermann said he ``remains cautious'' after the investment bank posted a 311 million-euro pretax loss following markdowns on mortgage securities, loans and debt backed by bond insurers. Deutsche Bank sidestepped the worst of the subprime contagion, which led to record losses and capital raisings at UBS AG and Merrill Lynch & Co.

Write Reuters wrote:

Deutsche Bank's writedowns swell beyond $11 bln. Deutsche Bank made a further $3.6 billion of writedowns in the second quarter of the year, taking its bill from the global financial crisis beyond $11 billion.
Germany's flagship financier had originally been seen as one of the winners in the chaos but as the problems on global markets continue, Deutsche Bank is being sucked ever deeper into trouble.
The group's pretax profit fell in the second quarter to 642 million euros ($1 billion), it said on Thursday -- a fraction of the 2.7 billion euros it made a year earlier as writedowns ate into profits.
Deutsche Bank said it had made 1 billion euros of writedowns in residential mortgage-backed securities and a further 500 million linked to monoline insurers. Commercial real estate investments had cost it 300 million euros.

Related Posts :

1. Writedowns of Largest Banks Reach $274bn
2. Bridgewater warns Bank losses from credit crisis may run to $1,600bn

Please Note!
This is generally never true. Before buying or selling any stock you should do your own research and reach your own conclusion. See my Disclaimer on the bottom for more information.

You are welcome to republish this article, or any portion thereof.
Please, cite the actual/original source. I would be grateful if you could link back.