German uber-bank Deutsche Bank reported a first quarter net loss in 2008 of US$225 Million caused primarily by the Corporate Banking and Securities division which reported loss before income taxes of EUR 1.6 billion after mark-downs of EUR 2.7 billion.

Markdowns of EUR 2.7 billion were recorded in respect of leveraged loans and loan commitments, commercial real estate and residential mortgage-backed securities (predominantly Alt-A). A gain of EUR 77 million arose from the widening of credit spreads on certain Deutsche Bank debt, for which the fair value option was elected. The Tier 1 capital ratio at the end of the quarter, reported under Basel II, was 9.2%.

Dr. Josef Ackermann, Chairman of the Management Board, said: "In the first quarter of this year, financial market conditions were the most difficult in recent memory. In the month of March, pressure on the banking sector was more intense than at any time since the current credit downturn began. Inevitably, this left its mark on Deutsche Bank's results. Nevertheless, relative to the environment and the industry, this is a solid performance."

He added: "Deutsche Bank's position is clear. We remain rigorous in controlling costs and monitoring investment spending. We are redeploying both human and capital resources towards growth businesses and regions. We are swiftly and decisively reducing our risk exposures. We have consolidated our capital strength.

We re-affirm our strategy and our business model. Our integrated 'one bank' approach has proven its worth and is essential to our success and our ability to create value for our shareholders. We have captured market share in some important areas. The fundamental trends shaping our operating environment are unchanged, and Deutsche Bank is very well-positioned to emerge stronger than ever from a recovery in business conditions. We are equally determined to meet near-term challenges, and to take advantage of longer-term opportunities."