Feb.02 - Deutsche Bank has posted a fourth-quarter pretax loss after investment banking wilted amid the sovereign debt crisis, and as bad investments and litigation charges spoiled Josef Ackermann's final earnings presentation as chief executive. Hayley Platt reports
Deutsche bank's chief executive Josef Ackerman presides over his last shareholders meeting before stepping down. The German bank has been hit hard by the euro zone debt crisis. It made a pre tax loss of just over 350 million euros compared to profits of more than double that last year. But Ackerman said the bank was in good shape. SOUNDBITE: Josef Ackerman, Head of Deutsche Bank, saying (German): "I can't predict whether there will any more one-offs. But I assume that the legal risks will continue over the next years. But as I said there is my partial parting gift of several hundred millions to create a strong and intact platform after the shareholder's meeting." Analysts had been expecting the bank to make a profit of around a billion euros for the quarter but a number of bad investments and litigation charges spoiled its balance sheet. Oliver Roth is a Frankfurt-based trader. (SOUNDBITE) (English) TRADER FOR CLOSE BROTHERS SEYDLER BANK, OLIVER ROTH, SAYING: "The results of the fourth quarter of Deutsche Bank were of course a bad surprise for the stock exchange because analysts were expecting much better figures. That's one side. On the other hand, I guess that (CEO) Josef Ackermann also tried to tidy up his desk for his successors." Revenues from its investment banking fell by a quarter and trading in bonds and shares was also down. Private banking, cash management and treasury services faired better but they weren't enough to offset the losses elsewhere. Speaking about the euro zone Ackerman was optimistic about the future. (SOUNDBITE) (German) HEAD OF DEUTSCHE BANK, JOSEF ACKERMANN, (about the Greek talks) SAYING: "I don't think we are that far apart any more. Greece's ability to deal with its debt has to be presented, it has to be clearer what the debt is. The investors have contributed a lot. But that isn't quite enough to meet the goals. But it is a big step in the right direction." Ackerman has been chief executive at Germany's biggest bank for a decade. He'll be replaced in May by two new chief executives who will share the role. Hayley Platt, Reuters.