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Deutsche Bank pockets hefty Q3 profits

Deutsche Bank, the biggest German bank, presented crisis-beating results on Thursday, cutting provisions against bad loans and reporting its third big quarterly net profit in a row.

Deutsche Bank pockets hefty Q3 profits
Photo: DPA

Net profit for the third quarter was €1.4 billion, the third in a row to exceed €1 billion.

“All our business segments were profitable in the quarter,” chairman Josef Ackermann was quoted by a statement as saying.

A strong contribution came from the Corporate Banking and Securities division which showed earnings of €4.4 billion, four times the amount posted in the third quarter of 2008.

Provisions against bad loans, an indicator of how the bank views the near-term future, were cut almost in half to €544 million from the previous three-month period.

Provisions, a critical variable factor in bank results, represent money put aside in case of problems. They reduce declarable profit, but may boost profits later if all the problems do not arise.

Deutsche Bank had booked €1 billion in provisions against bad loans in the second quarter of the year.

“The low risk provisions figure indicates that the quality of Deutsche Bank’s loan portfolio is better than expected,” Merck Finck analyst Konrad Becker said.

Analysts polled by Dow Jones Newswires had expected the sum to come to €689 million this time around.

Compared with the third quarter of 2008 however, provisions were more than double the €236 million reported by the bank. And on a nine-month basis, they came to €2.1 billion, compared with €485 million in the same period in 2008.

German banks in general are bracing for losses from bad loans, which has made them wary of expanding credit to businesses and households. But Deutsche Bank finance director Stefan Krause told a telephone news conference: “We don’t foresee an additional increase in provisions” next year.

Meanwhile, Deutsche Bank also confirmed its third-quarter net profit of €1.4 billion, the third quarterly figure in a row exceeding €1 billion.

“Deutsche Bank has proved its resilience in an exceptionally tough environment, and has indeed emerged stronger from the crisis,” Ackermann said.

Investors seemed to agree, and shares in the bank gained 1.71 percent to €49.73 in morning trading on the Frankfurt stock exchange, while the DAX index of leading shares was 0.07 percent higher overall.

On Wednesday, Deutsche Bank said it would buy Sal. Oppenheim, a Luxembourg-based private banking group, for €1.0 billion, a price deemed interesting by the markets.

Deutsche Bank said it would not have to increase its capital to finance the deal, which it intended to pay for with its own shares.

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WORKING IN GERMANY

Which Bavaria-based companies regularly hire English speakers?

Bavaria is no doubt a beautiful state with a strong economy, but can be a hard place for non-German speakers to integrate. The Local takes a look at job opportunities in Germany’s southeastern 'Free State.'

Which Bavaria-based companies regularly hire English speakers?

Munich ranks third in German cities with the highest total GDP, behind Berlin and Hamburg, but in terms of GDP per capita, it’s higher than both of them.

It also consistently ranks high, often highest, in terms of average household income.

As of 2023, nine of the 40 companies listed on DAX, Germany’s stock index, were based in Bavaria. Seven of those are based specifically in Munich.

While Frankfurt is commonly known to be Germany’s business capital, Munich can claim the title of Germany’s insurance capital, which is saying something, as Germany is home to some of the largest insurance firms in the world, like Allianz.

Beyond the state’s capital city, a number of international companies are based elsewhere in Bavaria, particularly in the Franken region, near Nuremberg.

Which companies actively hire English speakers?

Bavaria, and Munich in particular, is home to a number of companies at the forefront of international business. But the state is known for its traditional, sometimes conservative, culture, which affects its business culture as well.

Whereas companies embracing English as their primary business language are easy to find in Berlin, the practice is less common in the south. That said, there are some notable exceptions. 

Sportswear giants, Adidas and Puma, both have their headquarters near Nuremberg in Herzogenaurach, and regularly recruit English speaking international talent.

“As an international company, our teams reflect the rich diversity of our consumers and communities,” Jon Greenhalgh, Senior Manager Media Relations for Adidas told The Local. “Fostering a culture of inclusion where we value and leverage differences, ensures that we can authentically engage with our employees and truly connect with our consumers.”

He added that around 40 per cent of Adidas’ Germany-based employees are foreign nationals, from over 100 different countries.

Siemens and BMW rank among Bavaria’s top employers, and are also known to hire their fair share of foreigners.

“In Germany, we recently had around 2,000 open positions,” Konstanze Somborn told The Local on behalf of Siemens AG.

He added that Siemens operates in 190 countries. “That is why we value international teams very much…English as a common language is very usual.”

READ ALSO: ‘Which German companies want to hire foreigners?’

Similarly, BMW hires workers from a variety of backgrounds. 

“Every year, we hire lots of internationals and welcome them to the BMW Group,” Dr. Hans-Peter Ketterl, a press spokesman for BMW Group told The Local. 

But not all of these positions are available to non-German speakers.

Ketterl added that BMW’s working language is German in the country, even though, “English is an indispensable entry requirement as the second corporate language in many areas of the company.”

Check job boards and follow best practices

If it’s your first time applying for jobs in Germany, make sure to change your resume to the German format, even for English positions.

While Germany is home to its own job boards, like Xing, LinkedIn is probably the best place to start. In addition to searching for positions based in your preferred location, you can check relevant groups, like Munich Startups, to broaden your horizons.

The English Jobs in Germany website is also a good resource to start with. 

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