Net profit down 29% for Deutsche Bank to 238 million in the second quarter of the year (334 million last year). The largest German bank reveals a result significantly lower than the estimates of analysts who aimed for a net result exceeding 500 million. The bank explained the drop in net income with a 74% tax rate due in part to non-tax deductible expenses. The intermediation margin dropped by 4% to 7,86 billion. The pre-tax result grew by 16% to 917 million.
The German group then announced a provision of 250 million for credit losses in the quarter which adds to the 246 million of the first quarter. Deutsche Bank's cost/income ratio leaps to 85% (77% in the first quarter). The largest German bank then signals a capital strengthening with the common equity tier 1 ratio at 11,5% from 9,5% reported at the end of March. The strengthening derives from the recent capital increase of 8,5 billion. Deutsche Bank has assets of 1.665 billion.
