Deutsche Bank dips on German weakness

Click to follow
The Independent Online
DEUTSCHE BANK, Germany's largest commercial bank, yesterday reported a 3.2 per cent drop in group operating profits to DM3.06bn ( pounds 1.27bn) for the six months to 30 June.

The bank said that moderate growth in the world economy and economic weakness in Germany were responsible for the fall in profits.

'The restrained pace of the world economy and a slowdown of economic dynamism at home had an increasing impact on the business and earning situation at Deutsche Bank,' it said.

Group partial operating profits, which do not include gains from own-account securities trading, fell 1.5 per cent to DM2.36bn.

The results were worse than those of its main competitors. Dresdner Bank yesterday announced a 20 per cent rise in partial operating profits for the first half of 1992, following a 14.7 per cent rise in Commerzbank's profits last week.

Net interest income, Deutsche's main source of income, declined, the bank said, but net fee income and net commission income rose slightly. Total lending for the group climbed 8 per cent, with about one-third coming from foreign borrowers.

Total assets at 30 June were 5.2 per cent higher at DM472.6bn. The bank said it was confident it would post an 'overall satisfactory' full-year result.

After the announcement of yesterday's results, the shares initially dipped DM1.40 to DM625.10, but picked up again to close at DM634 in Frankfurt.