Net revenues for the quarter were € 6.8 billion, up 15% versus the second quarter 2005. Revenues in the Corporate and Investment Bank (CIB) rose 27% to € 4.5 billion. Revenues in Sales & Trading (Debt and other products) were the best ever for a second quarter, rising 46% to € 2.4 billion, against a backdrop of better markets in credit trading and strong customer activity in the foreign exchange, money markets and rates businesses. Revenues in Sales & Trading (Equity) rose 23% to € 743 million, with growth in derivatives, cash and prime services. In challenging equity markets, CIB’s equity proprietary trading unit gave up some of the gains recorded in the first quarter, resulting in a second-quarter trading loss, but nevertheless remained solidly positive for the first six months of 2006. Revenues in Origination and Advisory rose 33% to € 732 million, driven primarily by record revenues in Origination, with high-yield debt issuance recovering strongly from the challenging conditions of the second quarter 2005.

Revenues in Private Clients and Asset Management (PCAM) rose 15% to € 2.3 billion, mainly reflecting substantial performance fees in the real estate Asset Management business, while revenues in both Private Wealth Management and Private & Business Clients also grew year-on-year.

For the first six months, Group net revenues were € 14.8 billion, up 18% versus the first six months of 2005.

Provision for credit losses, which includes provisions for both loan losses and off-balance sheet positions (the latter reported in noninterest expenses), was € 78 million for the quarter, slightly down from the second quarter 2005. Provision for credit losses in PCAM grew in line with business growth in consumer lending, whilst provision for credit losses in CIB continued to benefit from successful workouts. Problem loans at the end of the quarter were € 3.5 billion, down from € 3.6 billion at the end of the first quarter 2006, the lowest level for more than five years.

Noninterest expenses for the quarter were € 4.8 billion, compared to € 4.4 billion in the second quarter 2005. The reported cost/income ratio was 71%, down from 75% in the second quarter 2005, while restructuring charges were € 57 million, down from € 116 million. The operating cost base, which excludes restructuring charges and other items, was € 4.8 billion in the second quarter, up 12% versus the second quarter 2005. Compensation costs rose by 17% to € 3.1 billion, reflecting higher performance-related compensation, and resulting in an underlying compensation ratio of 46%, up from 45% in the second quarter of 2005 but stable compared to the first quarter 2006. Non-compensation operating costs were € 1.7 billion, up by 4% versus the second quarter 2005, reflecting business investments including marketing and promotional expenses. For the first six months, noninterest expenses were € 10.2 billion, up 12% versus 2005, while the operating cost base was € 10.1 billion, up 15%, with both increases reflecting higher bonus accruals consistent with improved operating performance. The underlying cost/income ratio for the first six months improved to 69%, down from 72% in the first six month of 2005.

Income before income taxes for the quarter was € 1.9 billion, up 32% versus the second quarter 2005. Reported pre-tax return on average active equity was 29%, up from 23% in the prior year period. Per the bank’s target definition (which excludes restructuring charges of € 57 million in the current quarter and € 116 million in the second quarter 2005), pre-tax return on average active equity was 29%, compared to 25% in the prior year period. For the first six months, pre-tax return on average active equity, per target definition, was 35% versus 29% in 2005.

Net income for the quarter was € 1.2 billion, up 29% from € 947 million in the second quarter 2005. The effective tax rate was 34%, compared to 33% for the second quarter 2005. Diluted earnings per share for the quarter were € 2.17, up 14% versus the second quarter 2005. For the first six months, net income was € 2.9 billion, up 43% versus 2005, while diluted earnings per share were € 5.57, up 37%.

The BIS Tier 1 ratio was 8.7%, compared to 8.8% at the end of the first quarter, and comfortably within the bank’s target range of between 8 and 9%. Deutsche Bank reaffirmed its capital management strategy of maintaining core capital strength, funding business growth, and generating attractive returns for shareholders. The bank grew its risk position by € 6 billion to € 263 billion during the quarter, whilst also repurchasing 12.3 million shares, at an average price of € 91.03 per share. At the Annual General Meeting on June 1, shareholders approved a new buyback program, authorizing the repurchase of up to a further 10% of outstanding shares, which was started on June 2, 2006, replacing the previous program.