According to the Reuters analysts survey, Deutsche Bank AG's second-quarter net profit increased by 68% to 1.092 billion euros (or $1.56 billion), boosted by its investment banking arm. At the same time, loan provisions moved up sharply leveraged by economic slowdown.

Thereby, net profit at Deutsche Bank surpassed the average estimations of 985 million euros, and appeared to be considerably higher 649 million euros in the second quarter of 2008. Thus, pretax profit more than doubled, climbing to 1.32 billion euros, with the investment banking arm accounting for 828 million euros.

Such encouraging results draw a picture of banking sector recovery for some companies, even if the fallout from the credit crisis in the real economy is requiring extra provisions for problem loans.

Deutsche Bank stated provisions for credit losses grew up to 1 billion euros in the second quarter from 135 million euros in the second quarter the previous year and almost doubled the 526 million euros in provisions made during the first quarter of the current year. 

CEO Josef Ackermann considers Deutsche Bank to be “well prepared" for an "uncertain environment" for the rest of 2009. He also stated the rest of the year forecast is "strongly influenced by progress in the global economy". 

The Bank reported, it boosted its tier 1 capital to 32.5 billion at the end of the quarter, giving it a capital ratio of 11%, up from 10.2% at the end of the first quarter 2009.