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Deutsche Bank second quarter profits rise 9%

German group benefits from lower bad loan provisions than last year.

Germany's biggest lender, Deutsche Bank, on Tuesday reported a 9 per cent rise in second-quarter net profits, from €1.1bn last year to €1.2bn (£1bn) this year.

The gains by its asset management operations and transaction banking, together with lower provisions for bad loans, are reported to have helped Deutsche Bank's earnings by offsetting a weaker performance in investment banking.

"In a quarter which was characterised by increased investor uncertainty and higher market volatility, Deutsche Bank's investment banking business followed the industry-wide trend of weaker profitability," chairman and CEO, Josef Ackermann said.

Although overall revenues in April-June fell to €7.2bn from €7.9bn the previous year, provisions for bad loans were considerably lowered from €1bn to €243m in the second quarter over a year.

Profitability was made possible by a rise in revenue from €654m to €1.1bn over the period, strengthened by extra revenue from the bank's acquisition of parts of ABN Amro's Dutch commercial operations, reports AP.

The announcement of the results boosted Deutsche Bank's shares by 2.2 per cent at €51.47 in Frankfurt.