Deutsche Bank warns over profits

The company is Germany's largest bank

Deutsche Bank has warned that continuing global credit turmoil and possible further bad debt write downs may see it miss its 2008 profit target.

The lender said that if "exceptionally difficult" trading conditions continue, it may fail to meet its aim of 8.4bn euros ($13bn; £6.5bn) in net profits.

The trading update by Germany's biggest bank sent its shares down 1.6% in early Wednesday trading in Frankfurt.

Last month, it reported a 48% fall in profit for the last quarter of 2007.

It gave no new figures for its projected 2008 profits.

'Adversely impact'

Deutsche Bank said its corporate and investment banking units were being most directly affected by the continuing financial market turbulence.

"Compensating for these negative effects on our profitability through performance in our other businesses may not be feasible, particularly if assumptions for continuing, albeit slower, economic growth in 2008 are not correct and less favourable economic conditions prevail," it said.

"These circumstances would likely adversely affect our ability to achieve our pre-tax profitability objective."

In October of last year, Deutsche Bank revealed a 2.2bn euro exposure to US sub-prime debt.