The euro zone’s debt crisis has paid off for Deutsche Bank in a big way – at least for one quarter.
Deutsche Bank’s shares rose more than 3 percent on Thursday as Germany’s largest bank posted a surprise fourth-quarter profit of €441 million ($498 million), helped in part by its investment banking team making the right bets on Europe’s economy – and especially on what the European Central Bank would do about it.
The bank, which has struggled mightily to turn a profit over the last year and is in the middle of a major strategic review of its businesses, said it was “encouraged” by the results it has seen over the final three months of the year, which compared to a €1.4 billion loss in the fourth quarter of 2013.
For the year, the bank said it earned a profit of €1.7 billion, up from €0.7 billion in 2013, but still well below the profits seen by many of its U.S. peers. JP Morgan, for example, posted a record $22 billion profit for the whole of 2014.