Deutsche Bank says it made its first annual loss last year after being hit by the financial crisis.
Deutsche Bank says it made an annual loss last year, its first since being restructured after World War II.
For 2008, Germany's biggest bank made a net loss of 3.9bn euros ($5bn; £3.5bn) amid heavy write-downs. It had made a profit of 6.5bn euros in 2007.
The global financial crisis meant Germany's biggest bank made a net loss of 3.9bn euros ($5bn; £3.5bn) in 2008 following a 6.5bn euros profit in 2007.
The fourth quarter saw the biggest deficit, with the bank reporting a net loss of 4.8bn euros.
The fourth quarter saw the biggest deficit, with the bank reporting a net loss of 4.8bn euros.
Deutsche boss Josef Ackermann warned that the banking industry faced a tough future as the global economy worsened.
Deutsche boss Josef Ackermann warned that the banking industry faced a tough future as the global economy worsened.
"We see continuing very difficult conditions for the global economy, posing significant challenges for our clients and for our industry," he said in a statement.
"We see continuing very difficult conditions for the global economy, posing significant challenges for our clients and for our industry," he said in a statement.
"We are very disappointed at our fourth quarter result, and at the consequent full year net loss in 2008," he added, citing "completely unprecedented" market conditions that exposed weaknesses in its business model.
"We are very disappointed at our fourth quarter result, and at the consequent full year net loss in 2008," he added, citing "completely unprecedented" market conditions that exposed weaknesses in its business model.
While still struggling, Deutsche Bank has fared better than its rivals from the credit crunch and has not sought government help.
While still struggling, Deutsche Bank has fared better than its rivals from the credit crunch and has not sought government help.
The bank said it would pay shareholders a divided of 0.5 euro per share, but this is well below the 4.50 euros dividend paid in 2007 .
The bank said it would pay shareholders a divided of 0.5 euro per share, but this is well below the 4.50 euros dividend paid in 2007 .
Shares rattled
Shares rattled
Shares in Deutsche Bank fell in Frankfurt trade, down 3% to 20.63 euros, on news of the bank's first loss since it was restructured following World War II.
Shares in Deutsche Bank fell in Frankfurt trade, down 3% to 20.63 euros, on news of the bank's first loss since it was restructured following World War II.
The bank said compensation and benefits paid to employees had fallen 36% to 2.1bn euros, reflecting lower performance-related pay.
The bank said compensation and benefits paid to employees had fallen 36% to 2.1bn euros, reflecting lower performance-related pay.
There was no mention of this year's bonuses, but banks have come under pressure from government to limit such payments.
There was no mention of this year's bonuses, but banks have come under pressure from government to limit such payments.
US President Barack Obama has announced a $500,000 limit on executive pay at US firms that need substantial fresh government aid.
US President Barack Obama has announced a $500,000 limit on executive pay at US firms that need substantial fresh government aid.
Deutsche is one of the first major European banks to report earnings, with Barclays and RBS due to report later this month.
Deutsche is one of the first major European banks to report earnings, with Barclays and RBS due to report later this month.
The bank managed to increase its core capital ratio, which cushions banks against financial shocks, from 8.6% of total assets at the end of 2007 to 10.1%.
The bank managed to increase its core capital ratio, which cushions banks against financial shocks, from 8.6% of total assets at the end of 2007 to 10.1%.
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