Deutsche Bank has reported income before income taxes of EUR1.8 billion, and net income of EUR1.2 billion, for the third quarter 2006. Reported pre-tax return on average active equity was 27 percent.
Per the Group’s target definition, which excludes restructuring charges and substantial gains on sale of industrial holdings, pre-tax return on average active equity was 26 percent, equal to the prior year quarter, while diluted earnings per share for the quarter were EUR2.45, compared to EUR1.89 in the prior year quarter.
For the first nine months of 2006, income before income taxes was EUR6.3 billion. Reported pre-tax return on average active equity was 32 percent. Pre-tax return on average active equity, per target definition, was also 32 percent, compared to 28 percent in the first nine months of 2005.
Net income was EUR4.2 billion, up 37 percent versus the prior year period. Diluted earnings per share for the first nine months were EUR8.11, compared to EUR5.95 in the prior year period.
“We are pleased to deliver very solid results, with record third-quarter net income, despite market conditions which were less buoyant than in the third quarter last year,” says Dr. Josef Ackermann, the Chairman of the Management Board at Deutsche Bank. “As a result, profits for the first nine months of this year have already surpassed the full-year total for 2005. Looking forward, we have been encouraged to note that the acceleration of business activity which we saw in September continued into October. The corporate pipeline is strong. Global financial markets remain robust. Fundamental momentum in the world’s emerging financial markets has reasserted itself. In addition, we continue to strengthen our business with our private clients, and to reap returns on investments in our platform.”