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Deutsche Bank shines
FRANKFURT, Germany (Reuters) -- Deutsche Bank AG, Germany's biggest bank, reported a third-quarter profit above analysts' expectations on Thursday but slipped up in its hitherto strong trading performance. Net profit for the three months was 576 million euros ($674 million), swinging from a loss of 299 million euros in the same period a year ago. A Reuters poll of 22 analysts' forecasts had predicted a net profit of 487 million euros. Deutsche, both a global investment bank and a German-focused retail operation, returned to profit in the second quarter after nine months of losses. It is now seeking to prove it can generate sustainable revenues as well as cut costs. Although the bank chalked up better than expected numbers in both interest and commission income its trading result at 940 million euros came in far lower than the 1.426 billion euros analysts had predicted in the poll. Trading revenues tend to slow down in the summer months, a fact taken into account by most analysts in their predictions. The bank reported further progress in cutting costs, bringing administrative expenses in the quarter down to 4.2 billion euros from 4.9 billion euros a year ago. Chief Executive Josef Ackermann has been cutting costs by shedding 15,000 staff, focusing on the core business and selling off non-core industrial shareholdings. But his dreams of seeing Deutsche truly square up to its larger and more profitable U.S. rivals remain some way off, a fact underlined by Citigroup's third-quarter results which showed a net profit seven times greater than Deutsche's. Another cloud on the horizon for Deutsche is Ackermann's upcoming trial in January. German prosecutors have accused him of "breach of trust'' in approving large payouts to Mannesmann executives when he was on its supervisory board at the time it was taken over by mobile phone giant Vodafone three years ago. Ackermann has denied the charge.
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