The biggest German bank, Deutsche Bank, today reported a second quarter net profit of €1.2 billion, after taking an impairment charge of €155m related to the Greek debt crisis.
The bank's net result, which marked an increase of 6.2% from the same time in 2010, was better than average forecasts of €1.03 billion.
The German bank said its total exposure to debt in Greece, Ireland, Italy, Portugal and Spain stood at €3.7 billion as of June 30.
It said that core income before taxes in the three months from April to June rose to €1.8 billion, a gain of 17% on the year. Deutsche Bank took €464m in provisions against risky loans in the quarter meanwhile, compared with €243m a year earlier.
The bank's core Tier 1 ratio, a measure of its ability to withstand unexpected shocks to the financial sector, gained 1.5 percentage points to a healthy 10.2%.
'Despite increasingly difficult market conditions, our business model has proven to be robust,' chairman Josef Ackermann said in a statement.
'Our efforts to recalibrate and rebalance our platform are paying off nicely,' he added in reference to the bank's acquisition of Postbank, which has Germany's largest retail banking network.
Deutsche Bank said yesterday that Ackermann, who is 63, would move to head the supervisory board following his retirement in May 2012, and be replaced by two men, Anshu Jain and Juergen Fitschen.
