Deutsche Bank margins dip but market share up

first_img alison.lock Show Comments ▼ whatsapp Share Deutsche Bank margins dip but market share up whatsapp More From Our Partners Fans call out hypocrisy as Tebow returns to NFL while Kaepernick is still outthegrio.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comFort Bragg soldier accused of killing another servicewoman over exthegrio.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgLA news reporter doesn’t seem to recognize actor Mark Currythegrio.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgKansas coach fired for using N-word toward Black playerthegrio.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgPorsha Williams engaged to ex-husband of ‘RHOA’ co-star Falynn Guobadiathegrio.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comColin Kaepernick to publish book on abolishing the policethegrio.comFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comMan on bail for murder arrested after pet tiger escapes Houston homethegrio.comMatt Gaetz swindled by ‘malicious actors’ in $155K boat sale boondogglenypost.comKiller drone ‘hunted down a human target’ without being told tonypost.comInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.com Tags: NULL Deutsche Bank is winning market share to combat falling margins in its key investment banking arm and is confident of its ambitious 2011 profit target, its executives have said.Germany’s premier institution also revealed an average investment banker pay of over $500,000 (£309,000) each last year, a bigger bonanza than that enjoyed by Goldman Sachs employees.Profits from trading and underwriting deals accounted for 88 per cent of Deutsche’s profits in the fourth quarter, and as regulation squeezes margins, market share has become key.The bank expects growth outside investment banking to reduce that contribution to 50 per cent over the next three years.“Our confidence that we can achieve this (€10bn 2011 profit) target stems from the fact that we not only made provisions for the future in 2010, but we also set new records and captured market share in many businesses,” said Chief Executive Josef Ackermann.Anshu Jain, head of the investment banking division and a front-runner to take over from Ackermann when he retires in 2013, said the market share was now the key.“Margins have now stabilised but are sharply lower than they were right post crisis… So I would not say the margin story is a very positive story. It is a volume and market share competition,” he said.The bank packed a raft of restructuring charges into its 2010 figures earlier this week and missed expectations by a big margin. On Thursday Ackermann said the bank remained on track to deliver pretax profit of €10bn in 2011.Analysts remain sceptical, and a Reuters poll showed that the bank was not expected to get close to that figure before 2012.“If Deutsche Bank really reaches its 2011 target, we and many others will have to massively raise earnings estimates,” said Christine Schmid, an analyst at Credit Suisse Private Banking, which had 935bn Swiss francs of assets under management in September.Nevertheless, Deutsche Bank shares were up two per cent in afternoon trading after an initial decline in early trade, outperforming the STOXX Europe 600 Banks index, which was down 0.4 per cent.Analysts said they were relieved that details of the results did not contain any skeletons in the closet, although the lender published few details on its surging costs.“The good news is that the pretax miss they forewarned about on Monday seems entirely driven by restructuring costs,” said Matthew Clark, an analyst at Keefe, Bruyette & Woods, adding the underlying results looked pretty good.Monday’s profit announcement revealed earnings weighed down by charges to restructure the investment bank and integration costs for Deutsche Postbank and Sal. Oppenheim.Ackermann said Deutsche Bank deliberately accelerated some spending on integration and infrastructure upgrades.Deutsche Bank kept its dividend to shareholders unchanged at €0.75 per share, undershooting consensus for €0.82. Thursday 3 February 2011 11:24 amlast_img