Page last updated at 08:11 GMT, Tuesday, 27 April 2010 09:11 UK

Deutsche Bank reports bumper profits

Deutsche bank
Deutsche Bank benefited from a strong investment banking business

Germany's biggest lender Deutsche Bank has announced a near 50% jump in net profits to 1.8bn euros ($2.4bn; £1.6bn) for the first three months of the year.

Deutsche Bank credited record profits at its corporate and investment banking arm for its strong performance.

"The economic environment clearly stabilised in the first quarter," said chief executive Josef Ackermann.

The bank also said it was facing legal action in the US over mortgage-backed securities it helped arrange.

The Federal Home Loan Bank of San Francisco is suing Deutsche Bank, along with a number of other financial institutions, over financial instruments it bought.

Deutsche Bank said it was co-operating fully with the investigation.

Investors concentrated on the positive quarterly figures, however, which beat most analysts expectations.

"Deutsche Bank is above consensus both before and after taxes," said analyst Konrad Becker from Merck Finck.

"The bank probably profited from seasonal effects here again. In addition, the loan loss provisions fell significantly, which is a very good sign."

The bank had to put aside 262m euros to cover bad loans in the first quarter, down 50% on the same period last year.

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