Deutsche Bank reveals quarterly meltdown

Deutsche Bank today revealed just why it had to scrap its full-year profit forecast in the summer after what chief executive Josef Ackermann said had been the worst quarter for the industry since the collapse of Lehman Brothers.

"During the third quarter, the operating environment was more difficult than at any time since the end of 2008, driven by a deteriorating macro-economic outlook and significant financial market turbulence," he said.

The scale of the meltdown was most clear in corporate banking and securities, where profits of €1.1 billion (£950 million) a year ago collapsed to just €70 million in the past three months.

Deutsche also took a further €228 million writedown on Greek bonds held in its private and business clients arm. Even so, its €777 million after-tax profit - against a €1.2 billion loss a year ago - was better than analysts had expected.

Ackermann said Deutsche had "benefited significantly from the strategic decisions we have taken to recalibrate and de-risk our investment bank, increase the earnings contribution from our 'classic' banking businesses, and strengthen our capital, liquidity and funding position."