Deutsche bank has become the latest financial institution to report losses caused by the impact of the global downturn in the financial markets.
The collapse of the US sub-prime market has hit Deutsche hard, with the organisation announcing a pre-tax loss of $258 million at its city-based investment division during the third quarter of this year.
Deutsche also reported a charge of $3.1 billion during the third quarter which was caused by the sub-prime crisis affecting the global markets.
Josef Ackermann, chief executive at Deutsche Bank, described the three months to the end of September as “extremely turbulent.”
However, the bank as a whole did report an improvement in its anticipated performance for the period, despite the problems affecting its investment arm.
Pre-tax earnings across the group were reported to be $2 billion. While this represents a 19% decrease on the same period last year, it is higher than the earnings expected by the company only a few weeks ago.
“Our ‘stable’ businesses performed well and we reaped the benefits of some recent investments,” Ackermann says. “As a result, I am pleased to report that, overall, our businesses turned in a satisfactory result.”