Frankfurt - Despite deepening economic uncertainty,
Germany's biggest bank Deutsche Bank AG said Tuesday it had a good
start to 2009 and could return to profit this year.
'At the time of writing, I am pleased to report that we have made
a good start to 2009,' Deutsche Bank chief Josef Ackermann wrote in a
letter to the bank's stockholders contained in the group's annual
report.
'We are very disappointed at our loss in 2008, but absolutely
determined to take all necessary measures to restore Deutsche Bank to
the path of profitability,' he said.
Deutsche's comments on its performance so far this year follow a
series of positive comments by several of the world's biggest banks
and add to the cautious optimism that the global banking sector has
started to turn the corner after been badly hit by the world
financial crisis and high risk investments.
Despite only limited exposure to the so-called toxic assets linked
to the US mortgage meltdown, Frankfurt-based Deutsche Bank announced
last month a record 4.8-billion-euro (6.5 billion dollars) net loss
for the final quarter of 2008 in the wake of global financial market
turmoil.
The grim fourth-quarter earnings report helped to pave the way for
the bank's first full-year loss since the Second World War.
Deutsche said it posted a net loss in 2008 of 3.9 billion euros
after record profits of 6.5 billion euros in 2007.
Ackermann said he sees the bank returning to profitability this
year but does not expect any pickup to emerge in the banking sector
until 2010, with the industry still facing 'very difficult
conditions' in the coming months as recession tightens its grip on
the world economy.
'In 2010, some degree of recovery in the banking industry is
foreseeable,' Ackermann said.
'If the global economy, financial markets, legal and regulatory
environment, and competitive environment develop as foreseen,
Deutsche Bank expects to return to profitability in 2009,' he told
shareholders.
USA
Your Talkback on this Story