Deutsche Bank Says Worsening Markets May Affect Goal

Deutsche Bank AG, Germany's biggest bank, said the U.S. subprime collapse and slowing economic growth will make it harder to reach a full-year profit goal.

Deutsche Bank fell as much as 2.9 percent in Frankfurt trading after it said further possible asset writedowns and worsening economic conditions would ``adversely affect our ability to achieve our pretax profitability objective.''

The Frankfurt-based bank aims for pretax earnings of 8.4 billion euros this year, excluding one-time costs and charges, helped by growth from consumer banking and money management. Those units may not be able to offset a slowdown in investment banking should the economy weaken more than expected, the bank said in its annual report published today.

``The near-term outlook continues to be very challenging,'' Chief Executive Officer Josef Ackermann said in the report. ``Conditions remain difficult both in financial markets and the wider economy.''

Deutsche Bank fell 1.62 euros, or 2.2 percent, to 71.88 euros by 9:09 a.m., bringing declines this year to 19 percent and cutting its market value to 38.2 billion euros. That compares with a 17 percent drop at the 60-member Bloomberg Europe Banks and Financial Services Index.

U.S. consumer confidence fell more than forecast in March and home prices in January dropped by the most on record, supporting what economists say is almost certainly the second recession of the decade.

Deutsche Bank may miss its 2008 forecast and earn 6.77 billion euros before taxes this year because of a slowdown in debt markets, according to the median estimate of 7 analysts surveyed by Bloomberg.

http://www.bloomberg.com/apps/news?pid=20601087&sid=ayxXx8RpaHaQ&refer=home

Oh Acki, come on ! I thought you are MY MAN ! :(
 
Quote from ASusilovic:

``The near-term outlook continues to be very challenging,'' Chief Executive Officer Josef Ackermann said in the report. ``Conditions remain difficult both in financial markets and the wider economy.''

Translation------He doesn't have a clue. He's a.....how you say.......a dumkoff. :cool:
 
I've been waiting for this scumbag bank to squeak.

Open your paper to the foreclosures and I bet the named plaintiff you see with the greatest frequency across the US is DB.

They were also absent from the list of banks and large servicers willing to cooperate with Paulson in the first plan he came up with to get them to work with borrowers.

The role of irresponsible foreign banks in aggravating America's accelerating foreclosure problem would make a good topic for a piece in the business press - hint, hint.
 
The Swiss:
ackermann_victory.jpeg


The Brit:
churchill.jpg


The German:
Clements.Mittelfinger.jpg
 
Quote from nazzdack:

Quote from ASusilovic:

``The near-term outlook continues to be very challenging,'' Chief Executive Officer Josef Ackermann said in the report. ``Conditions remain difficult both in financial markets and the wider economy.''

Translation------He doesn't have a clue. He's a.....how you say.......a dumkoff. :cool:

Nazz,

dumkoff = Dummkopf....

Touchy, feely, crunchy Deutsche Bank
Mar 26 09:00
by Paul Murphy
Comment

Dr Josef Ackermann and his colleagues around the management boardroom table want you to know that Deutsche Bank’s annual report, published on Wednesday, underlines this institution’s commitment to providing transparency for all those who have a stake in Deutsche Bank’s success: More…

Dr Josef Ackermann and his colleagues around the management boardroom table want you to know that Deutsche Bank’s annual report, published on Wednesday, underlines this institution’s commitment to providing transparency for all those who have a stake in Deutsche Bank’s success: “our shareholders, our clients, our people, and the wider communities in which we operate.”

All of whom should now sit down.

The Financial Report includes detailed information on financial instruments according to IFRS 7 requirements. This encompasses risks arising from financial instruments (Note 37, pages 212 — 227) as well as information on how the fair value of financial instruments is determined (Note 12, pages 155 — 162). Note 12 includes information on those instruments which are valued using valuation techniques with unobservable parameters, frequently referred to as “level 3″ assets.

Deutsche Bank also provides added transparency on those of its risk positions that have been principally affected by the crisis in the credit markets, including its exposures to subprime CDOs, other US mortgage businesses, monoline insurers, commercial real estate and leveraged finance (pages 17 — 20). The Group also provides a detailed description of its off-balance sheet exposures arising from arrangements with unconsolidated special purpose entities (SPEs, pages 27 — 35). This includes information on exposures to Group-sponsored and third-party asset-backed commercial paper (ABCP) conduits.

The entire report (373 pages) is here or you can pick ‘n’ mix here.

http://annualreport.deutsche-bank.com/2007/ar/servicepages/downloads/files/dbfy2007_entire.pdf

Shortcut - download the full pdf and then zoom to page 85. Scroll down…through the guff about 2007 being a year of two halves…keep going…keep going…through the CDO subprime stuff…yes, it is very clearly set out, which is refreshing…through the “other US mortgage business exposure”… yes, €8bn of Alt-A, but they have been busy hedging this…through monoline exposure (€1.1bn)…yes, commercial real estate is eye-catching at €17bn, but this is a big bank and write-downs are small…so far…there’s more on that in the Risk Report…Oh my!…leveraged finance… €36bn…€20bn of that unfunded, €1.3bn write-down immediately, more write-downs on the way…

Off-balance sheet arrangements kick off on page 110…through ABCP conduits (€4.8bn still ‘warehoused’)…note the stuff about the Canadian ABCP conduit (did you know about the Montreal Accord - a standstill agreement last year between 22 conduits, which is now being “re-agreed on a daily basis”?!)…eh?..

We could go on - at length. Suffice to say that Deutsche is no longer sure that it will meet profit expectations this year. Its shares were off 2 per cent in early trade in Frankfurt.

http://ftalphaville.ft.com/blog/2008/03/26/11818/touchy-feely-crunchy-deutsche-bank/
 
I'm not done with DB yet I decided.

The shallowest part of The 9/11 Report, or any account of the September 11 attacks on the United States for that matter, is the financial and payments system angles.

Parse what was written at the time though and guess which foreign bank comes up with the greatest frequency and then goes nowhere? :D
 
Back
Top