German lender Deutsche Bank AG (DB) Thursday reported a profit in its fourth quarter, compared to prior year's loss, mainly reflecting lower expenses and provision for credit losses, as well as higher revenues in Corporate Banking & Securities segment.
For the fourth quarter, net income was 441 million euros, versus net loss of 1.4 billion euros a year ago. The latest results included an income tax benefit of 189 million euros, primarily attributable to changes in the recognition and measurement of deferred taxes.
Income before income taxes or IBIT was 253 million euros, compared to a loss of 1.77 billion euros in the prior year.
Core Bank IBIT, which excludes the Non-Core Operations Unit, was 943 million euros, significantly higher than last year's. Non-Core Operations Unit's loss before income taxes narrowed to 690 million euros from last year's loss of 1.27 billion euros.
The results reflected the solid revenue development in the Core Bank as well as lower litigation costs, along with lower provision for credit losses, the company said.
Non-interest expenses of 7.2 billion euros declined 5 percent from last year. Provision for credit losses were 369 million euros, a decrease of 49 percent from the prior year.
Net revenues for the quarter climbed 19 percent to 7.83 billion euros from 6.56 billion euros a year ago, attributable largely to 20 percent higher revenues in Corporate Banking & Securities segment.
In addition, the company gained market share across Fixed Income and Corporate Finance, and it surpassed 1 trillion euros in assets under management in Deutsche Asset & Wealth Management.
In fiscal 2014, income before income taxes of 3.1 billion euros more than doubled from last year, while net revenues of 32.0 billion euros were stable.
The company noted that for the first time ever, each of its four core business divisions delivered more than 1 billion in pre-tax profits in the year.
Jürgen Fitschen and Anshu Jain, Co-Chief Executive Officers of Deutsche Bank, said, "While we are encouraged by many of our full-year and fourth-quarter business results, we are working hard to further manage our cost base, maintain our capital strength and increase our returns to shareholders. We look forward to updating the market, and all of our stakeholders, on the next phase of our strategy in the second quarter."
On Frankfurt's Xetra, Deutsche Bank shares closed Wednesday's trading at 25.15 euros, down 0.85 percent.
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