Deutsche Bank, Germany’s largest bank, is facing record first quarter 2008 mark-downs of up to 2.5 billion.
Josef Ackermann, chairman of the Management Board of Deutsche Bank, will today address an investor conference in London. He is to comment on the operating environment during the first quarter of 2008, Deutsche Bank’s positions in key areas, and the financial impact of these positions.
As already indicated in Deutsche Bank’s 2007 Financial Report, published on 26 March 2008, markets remained difficult early in 2008. Conditions have become significantly more challenging during the last few weeks. As a result, Deutsche Bank anticipates in the first quarter 2008 mark-downs in the region of 2.5 billion, related to leveraged loans and loan commitments, commercial real estate, and residential mortgage-backed securities.
Deutsche Bank nevertheless expects a BIS Tier 1 capital ratio at the end of the first quarter 2008 of between 8 and 9%, consistent with the bank’s published targets.
Deutsche Bank will publish its first-quarter 2008 Earnings Release and Interim Report as scheduled on 29 April 2008.