Two of Europe’s largest investment banks on Wednesday played down concerns that they would need to raise additional capital. Deutsche Bank dismissed fears of a profit warning that had weighed on its share price in recent days, declaring it expected to report a profitable Q2 to the end of June. The news came as Peter Kurer, chairman of UBS, told Swiss TV that the bank would not need additional capital following its $15bn rights issue. The news follows intense speculation that banks may be preparing to report further losses on complex debt securities. Separately, the FT notes that Deutsche Bank’s reassurance evokes its approach to Q1 results when Josef Ackermann, chief executive, warned as soon as the quarter was finished that the bank would have to make write-downs of about €2.5bn. Deutsche went on to report a Q1 net loss of €141m, including €2.7bn of write-downs.

This entry was posted by Gwen Robinson on Thursday, July 3rd, 2008 at 5:40 and is filed under Capital markets, People. Tagged with deutsche bank, ubs. Edit this entry.