Deutsche Bank has recorded a profitable 2006, with net income for the year up 70% to E6 billion, compared with E3.5 billion in 2005. This was driven by fourth-quarter net income of E1.8 billion, an increase of 272% over the same quarter in 2005. This figure included the E355 million of corporate tax credits arising from changes in German tax law, which were recognized in the quarter.
Dr Josef Ackermann, chairman of the management board, commented: These are our best-ever fourth quarter results, and they complete an exceptional year for Deutsche Bank. Both in the corporate and investment bank and in private clients and asset management, we turned in a record year.
In Deutsche Bank’s corporate and investment bank division revenues rose by 20% to E4.5 billion which, according to the bank, is the best ever result for a fourth-quarter. Meanwhile, revenues from the bank’s private clients and asset management division rose 5% to E2.4 billion.
The fourth-quarter results also show that diluted earnings per share for 2006 were E11.55, up 66% compared to E6.95 in 2005. The bank commented that its shareholders would see improved value, as the management board has recommended a 2006 annual dividend of E4.00 per share, an increase of 60% from E2.50 per share in 2005.
Deutsche Bank has made several strategic acquisitions during its last fiscal year, including Berliner Bank, Norisbank, real-estate investment trust Mortgage IT and UK-based wealth manager Tilney Group. Mr Ackermann has commented that over the coming year, the bank is looking to pursue further expansion through both organic and inorganic means.
According to the International Herald Tribune, Deutsche Bank is now looking to acquire a stake of up to 20% in Vietnam’s Hanoi Building Joint Commercial Stock Bank, in a bid to capitalize on the growing Asian market.