Deutsche Bank expects full-year loss

The deep quarterly loss is the worst performance by Deutsche during the financial turmoil and will push Germany's largest bank to a net loss of €3.9bn in 2008. The full earnings announcement is on February 5.

Deutsche is the first big European lender in 2009 to produce an update on the final three months of 2008, which included the most volatile days of the crisis. It will raise fears that many other banks might be nursing steep losses following the collapse of Lehman Brothers.

Mr Ackermann said unprecedented volatility and the need to cut risk in illiquid markets had affected Deutsche's investment banking operations, particularly in credit and equity derivatives trading and proprietary trading. He said management of some areas had been “restructured”, with some senior managers leaving. Some proprietary trading businesses have been closed or sharply cut back.

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