- POSTED: 29 Jul 2014 16:22
Deutsche Bank, Germany's biggest lender, said on Tuesday (July 29) its net profits in the second quarter of the year had fallen by 29 per cent, due mainly to a heavier tax bill.
FRANKFURT: Deutsche Bank, Germany's biggest lender, said on Tuesday (July 29) its net profits in the second quarter of the year had fallen by 29 per cent, due mainly to a heavier tax bill.
The Frankfurt-based banking giant said its net profits came to 237 million euros (US$318 million, S$395 million) compared to 334 million euros in the same period last year. The profit figure was considerably lower than the 545 million euros that analysts surveyed by Dow Jones Newswires had expected. The company blamed a high tax bill for the decline in profits, notably higher non-deductible charges such as litigation expenses.
The bank's pre-tax profit actually rose by 16 per cent year-on-year to 917 million euros as the group cuts costs. But the group's total turnover fell by four per cent to 7.9 billion euros in what the bank admitted was a "tough operating environment."
Co-Chief Executive Officers Juergen Fitschen and Anshu Jain said the environment in which the bank was operating was "complex."
"The world's economies are growing at different speeds, and this may cause differences in the pace at which interest rates normalize, creating opportunities," the pair said in a statement. In addition, "emerging geopolitical events in Ukraine and the Middle East may impact financial markets and our clients, and we continue to adapt to a fast changing regulatory framework," the duo wrote.