Deutsche Bank profits plunge 69%

Germany's Deutsche Bank saw net profit fall 69% to 186 million euros in the fourth quarter as the eurozone debt crisis hit its businesses in investment banking and trading stocks and bonds.

It fell far short of analysts' estimates compiled by FactSet of 492.5 million euros, and compares unfavourably with 605 million euros in the same quarter last year.

Total net revenues were off 7% at 6.89 billion euros.

The results reflected the market turbulence and pessimism in the waning weeks of 2011 about Europe's chances of dealing with too much government debt in some countries amid a slowing economy.

The crisis has eased somewhat since the quarter ended, with stocks rising and governments finding it easier to borrow.

But the result was still a downbeat farewell note for chief executive Josef Ackermann, who will preside over his 10th and last annual press conference today before leaving his post on May 26.

The bank said the debt crisis made investors shy away from riskier investments and reduced the market activities it makes its money from.

The bank's corporate and investment bank, where its investment banking and securities trading businesses are housed, saw revenues drop 26% in the fourth quarter, to 3.4 billion euros from 4.6 billion euros a year earlier.

Income from trading bonds and other debt securities fell 35%, while trading in equities such as stocks brought in 38% less revenue.

"Current quarter performance was severely impacted by ongoing concerns around the European sovereign crisis and an overall uncertain macroeconomic environment," the bank said in a statement.

"This resulted in significantly reduced client activity across the industry and a decline in volumes across many products."

European officials are trying to support governments such as Italy and Spain which are struggling to maintain access to affordable borrowing so they can maintain their debt burdens without defaulting.

Greece, Ireland and Portugal have had to turn to other eurozone governments and the International Monetary Fund for bailout loans after fears that they might default made it impossible for them to borrow at affordable rates.

Concern that a government default might lead to a financial crisis and recession have caused seesaws in stock and bond prices for more than two years. Eurozone turmoil forced the bank in October to abandon its profit estimate of 10 billion euros for 2011.

Mr Ackermann will hand over to a new management team of co-chief executives Ashu Jain and Juergen Fitschen after the bank's shareholder meeting in May.