Deutsche Bank warns of more job cuts in tough trade
By Edward Taylor and Jonathan Gould
FRANKFURT (Reuters) - Deutsche Bank's (DBKGn.DE: Quote) third-quarter pretax profit beat forecasts as retail banking and asset management offset a drop in investment banking which it warned was facing the toughest conditions since 2008 that could lead to more job cuts.
Weaker market activity forced Germany's flagship lender to drop ambitious full-year targets earlier this month and announce 500 job cuts. On Tuesday the bank said it was in the process of cutting 10 percent of its investment banking staff.
"During the third quarter, the operating environment was more difficult than at any time since the end of 2008, driven by a deteriorating macro-economic outlook, and significant financial market turbulence," said Chief Executive Josef Ackermann.
Finance chief Stefan Krause said the bank would continue to adjust headcount if the market environment persisted, adding that the outlook for the sector remained highly dependent on the resolution of Europe's sovereign debt crisis.
The Frankfurt-based bank said its third-quarter pretax profit was 942 million euros ($1.3 billion). A Reuters poll had forecast a figure of 572 million euros, compared with a year-earlier loss of 1.05 billion euros.
By 0954 GMT (5:54 a.m. EDT) Deutsche Bank shares were up 0.8 percent at 28.68 euros, outperforming the Stoxx 600 European banking index , which was up 0.1 percent.
Pretax profit from the corporate and investment bank fell to 329 million euros from 1.3 billion euros in the year-earlier period as trust services, trade finance and cash management only partially offset a 34 percent slump in debt market sales and trading. Continued...