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Euro zone woes keep banks wary

Thursday, April 26, 2012 - 01:38

April 26 - Earnings from some of Europe's top banks showed the scars of the euro zone crisis on Thursday, with big losses on Spanish property and fragile economic recovery likely to dampen an early investment banking rebound. Ciara Sutton reports.

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More scars from the euro zone crisis are revealed - this time in the quarterly results from some of the region's top banks. Germany's biggest bank missed market expectations for the first quarter after being hit by litigation charges and poor earnings. Deutsche Bank reported group pre-tax profits of nearly 2 billion euros, down from 3 billion the year before. The poor results came after the bank took a 257 million euro hit after writing off its holding in pharmaceutical company Actavis. But CFO at Deutsche Bank, Stefan Krause says the bank remains strong. (SOUNDBITE) (English) DEUTSCHE BANK CFO, STEFAN KRAUSE, SAYING: "We have actually had quite a lot of successes across many businesses in terms of gaining market shares at Deutsche Bank. This gives us comfort that we are building a good and sound client and business base into the future. Therefore, we continue to look very positively. We are not drawing a line here, we do not need to because as you know, we have been able to achieve these results with quite low risk levels." Profit at Spanish lender Santander fell to 1.6 billion euros. It's home market is struggling with heavy debts and budget deficits. In contrast, Barclays beat market forecasts by posting a 22 percent rise. Strong revenue from its investment banking arm and a drop in bad debt countered increased compensation for insurance mis-selling. But despite their rebound banks generally remain wary - the sickly euro zone economy continues to dog the industry Ciara Sutton, Reuters.

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Euro zone woes keep banks wary

Thursday, April 26, 2012 - 01:38