Profits slide at Deutsche Bank

Deutsche chief said his bank made a profit despite 'extraordinary conditions'

Deutsche Bank has reported a fall in third-quarter pre-tax profits to 93m euros (£75.5m;$122.3m), down from 1.4bn euros for the same period last year.

The bank also announced it had written off 1.2bn euros of mortgage-backed securities during the quarter.

The bank was only able to make a profit because new accounting rules allowed it to cut the write-down by 800m euros.

Deutsche's shares closed up 17.74% after a strong day's trading on the Dax index in Frankfurt.

Credit crisis

The bank's chief executive, Josef Ackermann, said the period was characterised by "considerable intensification" of the credit crisis.

He warned that "conditions in the equity and credit markets remain extremely difficult".

Despite the tough conditions and the write-down, the bank had enough cash to buy a stake in Deutsche Postbank, Germany's largest retail bank by branches and customers, during the quarter.

The new accounting rules allow banks to hold assets at a fixed price. Under the old system, they had to be held at market value.