Deutsche Bank Q2 net income falls by nearly half to 661mn euro

The bank had a net income of 1.2 billion euro in the corresponding period a year ago, Deutsche Bank said in a statement.

Jurgen Fitschen and Anshu Jain, Co-Chairmen of the Management Board and the Group Executive Committee, said: "In the second quarter, the bank's performance was impacted by a volatile environment. The European sovereign debt crisis continues to weigh on investor confidence and client activity across the bank."

The bank's tier I ratio -- a key measure of financial health -- stood at 10.2 per cent at the end of the second quarter, up from 10 at the end of the first quarter of this year and well in excess of the 9 per cent threshold set by the European Banking Authority for June 2012.

The group's net revenues in the second quarter 2012 stood at 8 billion euro compared to 8.5 billion euro in the second quarter 2011, a decrease of 6 per cent.

A major hit to the revenues came in from the Corporate Banking and Securities division, owing to a deliberate lower risk taking to correspond with reduced business volume, Deutsche Bank said.

Revenues in Corporate Banking and Securities were 3.5 billion euro, down 451 million euro, or 11 per cent, as against 4 billion euro in the second quarter of 2011, Deutsche Bank said.

The asset and wealth management revenues declined by 85 million euro, or 9 per cent, to 891 million euro, while Global Transaction Banking revenues increased to 972 million euro, up 87 million euro or 10 per cent from the second quarter 2011.

Meanwhile, Swiss banking giant UBS today said its second quarter net profit more than halved to 425 million francs in the second quarter this year.