Deutsche Bank posts first loss in 52 years

The head of Deutsche Bank predicted "very difficult conditions" for the world economy as the beleaguered German banking giant posted its first annual lost since it was reformed after the end of the Second World War.
Josef Ackermann, the Swiss-born chairman of Germany's biggest bank, said the board was disappointed to have had to report an annual pre-tax loss of €5.9 billion (£5bn), covering the 12 months to the end of December.
As he confirmed figures first flagged by the bank last month, Mr Ackermann said the "completely unprecedented" market turbulence of the fourth quarter had hit the bank hard.
He admitted that it had exposed flaws in the bank's business model and that steps had been taken to address this.
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"We have significantly reduced certain legacy exposures and trading assets, and we have adjusted costs in businesses most directly affecdt by market turbulence," he said.
Deutsche Bank reported a net loss of €3.9 billion, having lost €4.8 billion after taxes in the fourth quarter.
During the final three months of 2007, even after the credit crisis had taken firm root, the bank made profits of €7.3 billion.
The turnaround underscores the unparalled market crisis, which worsened mid-September when Lehman Brothers collapsed and banks and hedges were left with billions in investment exposures.
Deutsche Bank was created in its current form in 1957 having been split into three regional banks during World War II.
"We are convinced that Deutsche Bank will emerge successfully from the current crisis," Mr Ackermann said.
Revenues over the full-year at Deutsche were €13.5 billion, less than half the €30.7 billion of the previous year. The bank wrote down €7 billion of investments last year, against €2.3 billion in 2007.
On top of the writedowns, Deutsche made provisions for further credit losses of €1.1 billion, a 76 per cent increase on the previous year.
Shares fell nearly 3 per cent, down €0.63 at €20.61.