Deutsche Bank spooked investors yesterday with unexpectedly weak earn-ings from trading securities in the second quarter, sparking fears that choppy markets could upset its results this year.
The disappointing trading income and a cautious forecast from the bank took the shine off a 30 per cent rise in net profit, which matched forecasts, and sent its shares down more than three per cent. The bank revealed a near 100 million euros (£68.4 million) loss from trading on its own account.
"Continuing uncertainties over the sustainability of economic growth, fuelled by concerns over higher inflation, may impact financial markets and business activities," said chief executive Josef Ackermann, comments some read as a warning of worse to come.
"It doesn't sound exactly ecstatic," said an analyst.
Deutsche's shares were the biggest losers on the DAX blue-chip index, trading down almost three per cent to 87.80 euros following the statement.
Deutsche Bank's net profit of 1.2 billion euros (£821.9 million) in the quarter was buoyed by strong commission payments of 3 billion euros (£2.05 billion) from customers trading debt, foreign currencies and derivatives as well as shares.