26-03-2008
Deutsche Bank issues profit warning
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
German banking firm Deutsche Bank has issued a profit warning for 2008.
The organisation has confirmed that profit targets for this year may not be reached, as a consequence of the possible need to write down further levels of bad debt. Deutsche Bank also blamed the ongoing crisis on credit, stating that investment and corporate banking divisions at the bank were the most affected by problems in the market.
"Compensating for these negative effects on our profitability … may not be feasible, particularly if assumptions for continuing, albeit slower, economic growth in 2008 are not correct and less favourable economic conditions prevail," said the bank.
For 2008, the bank had hoped to reach net profits of €8.4 billion (£6.5 billion) and this latest news follows earlier confirmation of a 48 per cent fall in profits, experienced by Deutsche Bank for the final three months of last year.
Established in 1870, Deutsche Bank operates worldwide.