Deutsche Bank shares jump on profits
- 30 October 2012
- From the section Business
Deutsche Bank shares have risen more than 3% after its profits beat analyst expectations.
The German financial services giant said its net income was 755m euros (£608m), hit by a larger tax bill, compared to 777m euros in the same quarter last year.
For the year so far, Deutsche Bank's profits have declined from 2011.
Net revenues grew by 18% to 8.7bn euros due to "improved market conditions and increased market activity".
Much of that came from corporate banking and securities trading.
"The European markets saw marked stabilisation in the third quarter of 2012 - compared with a very tense environment in the first half of the year," the bank said.
The results come as a European Union advisory group said earlier this month that Europe's banks should be split into separate legal entities, in order to protect ordinary retail banking from risky trading.
The EU is also moving towards banking union within the eurozone and is planning to have a eurozone-wide regulatory system, the Single Supervisory Mechanism (SSM), which it hopes will begin its work by the start of next year.
It would allow the ECB to assume full supervisory responsibility over any credit institution, particularly those which have received or requested public funding, with all banks covered by the SSM by the start of 2014.
Shares in Deutsche Bank are up 13% so far this year.
Separately, London-listed bank Standard Chartered said its income this year grew at a "high single-digit rate".
"Whilst the global economy is slowing, and within that the Asian economies are now showing signs of lower growth, the group has delivered a strong third quarter performance with good income growth," it added.
It said that its income growth excluded the impact of the UK bank levy - increased to 0.105% by Chancellor George Osborne this year - but includes its settlement of $340m (£212m) made to the New York State Department of Financial Services.
The regulator had accused it of hiding $250bn of transactions with Iran.