Deutsche Bank Says Underlying Profits Up in Third Quarter

Deutsche Bank, Germany's biggest bank, said Tuesday improved market conditions boosted underlying profits in the third quarter, even if net profit was down due to a much bigger tax bill.

Deutsche Bank said in a statement its net profit amounted to 755 million euros ($980 million) in the period from July to September, compared with 777 million euros a year earlier.

Profit attributable to Deutsche Bank shareholders, which strips out payments to minorities, increased by 3.0 percent to 747 million euros.

And underlying earnings, as measured by pre-tax profit, were up even more, gaining 20 percent to 1.1 billion euros, thanks to an "improvement in market conditions," said co-chief executives Juergen Fitschen and Anshu Jain.

The numbers were better than expected. Analysts surveyed by Dow Jones Newswires, had penciled in net profit of 704 million euros for the July-September period.

Net revenues grew by 18 percent to 8.7 billion euros, with revenues in corporate banking and securities soaring 65 percent owing to "improved market conditions and increased market activity," Deutsche Bank said.

Looking ahead, however, the bank appeared cautious.

"In the near term, the macro environment remains uncertain, and we will maintain a cautious and risk-focused approach," the two CEOs said.