Deutsche Bank, Germany’s largest bank, says its fourth-quarter and full-year earnings for 2010 both declined by more than half as the company absorbed the cost of buying Postbank.
The Postbank takeover took a chunk out of Deutsche Bank's profits
Frankfurt-based Deutsche Bank reported on Thursday that its fourth quarter net profit for 2010 slipped to 605 million euros ($835 million) while the full-year figure dipped to 2.33 billion euros. This was below analysts' expectations.
Year on year, the figure represents a drop of 54 percent from the bank's 2009 net profit of 4.96 billion euros.
Deutsche Bank chairman, Josef Ackermann, however, was upbeat and said he was sticking to his objective of turning a record pretax profit of 10 billion euros the full year.
CEO Ackermann is upbeat about the future
“2010 was a year of investment and change for Deutsche Bank,” Ackermann said in a statement. “In the process, while again demonstrating the earnings strength of our core businesses, we greatly improved our global market position and are eminently well placed for further growth,” he said.
Ackermann added that 2010 fourth quarter net revenues were up significantly to 7.43 billion euros, from 5.54 billion in 2009.
Fourth quarter results were weighed down by charges for the private banking subsidiary, Sal. Oppenheim, which cost 400 million euros, and by the 2.3 billion euros Deutsche Bank coughed up for Postbank.
Author: Gregg Benzow (AP, AFP, Reuters)
Editor: Nicole Goebel