Deutsche Bank Calms Jittery Markets

Stellar second-quarter earnings calm fears of contagion from the subprime crisis, but repercussions could still be felt down the line

Deutsche Bank (DB) helped ease fears that the subprime loan crisis could spread to Europe when it reported second-quarter earnings Aug. 1 that beat expectations. The Frankfurt-based bank said net profit rose 31%, to $2.5 billion, on sales of $12 billion. The bank's Sales & Trading unit was the star performer, with sales rising 89% from a year earlier, to $1.9 billion. "The numbers were excellent, there's very little to criticize," says Andreas Weese, an analyst at Unicredit Markets & Investment Banking in Munich.

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