Deutsche Bank AG swung to a surprise fourth-quarter pre-tax loss of €351 million as additional write-downs on Greek bonds, losses in its corporate investment bank unit and litigation charges weighed on the results.
Analysts expected a profit of €572 million. However, due to tax benefits, Germany's largest bank by market value posted a fourth quarter net profit of €186 million.
"Once again, Deutsche Bank has proved its ability to deliver substantial earnings in challenging conditions. In 2011, our classic banking business produced record earnings, thus counterbalancing the impact of weak markets in investment banking," said outgoing Chief Executive Josef Ackermann.
The bank "also significantly strengthened" its capital base, boosted liquidity reserves and reinforced our funding position," Mr. Ackermann added.
Deutsche Bank improved the core Tier 1 capital ratio under Basel 2.5 rules to 9.5% from 8.7% a year earlier, exceeding the capital adequacy standard of 9% the European Banking Authority determined last year.
Deutsche Bank also said it will propose an unchanged dividend of €0.75 a share at the AGM in May.
read more: Olympus Wealth Management
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