Deutsche Bank AG / Preliminary Results
14.01.2009
Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Deutsche Bank (XETRA: DBKGn.DE / NYSE: DB) today announced, on a
preliminary and unaudited basis, key elements of its fourth quarter 2008
financial performance:
Fourth-quarter loss: The bank currently anticipates a loss after taxes in
the region of EUR 4.8 billion for the fourth quarter 2008. This development
reflects exceptional market conditions, which severely impacted results in
the sales and trading businesses, most notably in Credit Trading including
its proprietary trading business, Equity Derivatives and Equities
Proprietary Trading. The result also reflects exposure reduction and other
de-risking measures, a significant increase in provisions against certain
of our monoline counterparties, and certain other exceptional gains and
charges, including reorganisation charges. In Asset and Wealth Management,
the bank anticipates a fourth quarter loss driven by an impairment charge
on intangible assets related to DWS Scudder and substantial injections into
money market funds.
For the full year 2008, the bank currently anticipates a loss after tax in
the region of EUR 3.9 billion.
Limited use of the fair value option on own debt: Consistent with stated
policy, the bank continues to make very limited use of the fair value
option on its own debt. For comparative purposes, it is noted that election
of the fair value option on all of Deutsche Bank´s issued debt would have
provided an additional pre-tax gain in excess of EUR 5.5 billion for the
full year 2008.
Capital strength: At the end of the fourth quarter, the bank anticipates
that its BIS Tier 1 ratio will be in the region of 10%, its published
target. This reflects a dividend accrual of 50 Cents per share for 2008.
Further progress in balance sheet de-leveraging: Global Markets made
further significant reductions to its trading and other non-derivatives
assets during the fourth quarter 2008 of around EUR 300 billion, reflecting
the banks balance sheet de-leveraging initiatives in this area. However,
these reductions were more than counterbalanced by higher positive market
values from derivatives, for which very limited netting is available under
IFRS accounting rules. The increase in our gross mark-to-market derivatives
balances reflect the exceptional volatility and extreme yield curve moves
during the quarter. The reduction in trading and non-derivatives assets in
no way compromised the banks lending to the German midcap sector during
the quarter. The banks leverage ratio, according to its target definition,
is anticipated to decrease compared to the end of the third quarter 2008.
Significant reduction in key credit market exposures: The banks exposure
to leveraged loans and loan commitments (held on a fair value basis) was
reduced from EUR 11.9 billion at the end of the third quarter to below EUR
1 billion at the end of the fourth quarter 2008. Furthermore, commercial
real estate loans (held on a fair value basis, net of risk reduction)
declined from EUR 8.4 billion to under EUR 3 billion in the same period.
Corrective measures: The Management Board decided upon a number of
corrective adjustments to its platform in the quarter, some of which were
implemented toward the end of the quarter, and are thus reflected in the
fourth quarter results. Other measures will follow in 2009.
Deutsche Banks fourth-quarter and full-year 2008 results will be published
as scheduled on 5 February 2009 with the Annual Press Conference and an
Analyst Conference taking place on the same day in Frankfurt.
DGAP 14.01.2009
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Language: English
Issuer: Deutsche Bank AG
Theodor-Heuss-Allee 70
60486 Frankfurt a. M.
Deutschland
Phone: +49 (0)69 910-00
Fax: +49 (0)69 910-38 591
E-mail: Deutsche.Bank@db.com
Internet: www.deutsche-bank.de
ISIN: DE0005140008
WKN: 514000
Indices: DAX, EURO STOXX 50
Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard),
Hannover, Düsseldorf, Stuttgart, München, Hamburg;
Terminbörse EUREX; Foreign Exchange(s) NYSE
End of News DGAP News-Service
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DGAP-Adhoc: Deutsche Bank provides update on fourth quarter 2008 performance
| Source: EQS Group AG