Deutsche Bank made a large profit from betting on the weakening of the US subprime mortgage market, the German bank said on Tuesday as it reported record first-quarter earnings. Unlike some of its peers, Deutsche Bank benefited from the market correction in March, when the subprime mortgage market nearly collapsed, by placing bets on the US mortgage market weakening. Pre-tax Q1 profits rose 22 per cent to a record €3.2bn. The investment banking business was again the main driver, accounting for 75 per cent of pre-tax profits, while its asset and wealth management businesses — hit by a slowdown in the US property market — was disappointing.
