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Last Updated: Thursday, 2 February 2006, 11:54 GMT
Deal flow boosts Deutsche profits
Dr Jozef Ackermann, Deutsche Bank's chief executive
Jozef Ackermann has plenty to smile about
The flurry of mergers and acquisitions in Europe last year has boosted annual profits at Deutsche Bank.

The German bank saw pre-tax profits rise 58% to 6.4bn euros ($7.7bn; 4.3bn) as more corporate activity boosted investment banking income.

Chief executive Josef Ackermann hailed the performance as a "truly outstanding result" and said the outlook for 2006 was equally favourable.

Deutsche Bank also said its share of problem loans was at a five-year low.

Deal deluge

Like many leading European banks, Deutsche benefited from the increase in high-value cross-border deals seen last year.

We have invested in growth businesses and regions during 2005 and we will continue to do so
Dr Josef Ackermann, chief executive

Earlier this week, Dutch bank ABN Amro reported a 13% rise in 2005 profits.

Deutsche also swelled its revenues by 330m euros by selling shares in DaimlerChrysler.

Income from business banking and asset management - including wealth management services for private clients - both rose sharply.

"We have reached our financial target thanks to continued revenue growth in key businesses, strict control of costs, risks and capital and a rigorous focus on core business lines," Mr Ackermann said.

"We have invested in growth businesses and regions during 2005 and we will continue to do so."

Deutsche Bank said it planned to create 500 new jobs in Germany.

The firm sparked controversy last year when it announced thousands of job cuts in an effort to make 900m euros in annual savings.

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