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Deutsche halts sale talks
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November 1, 2000: 10:58 a.m. ET
Bank ends talks to sell stake in retail business to Allianz; 3Q profit surges
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LONDON (CNNfn) - Deutsche Bank AG, Europe's biggest bank by assets, said Wednesday it was no longer in talks with insurer Allianz AG about selling part of its retail business, Deutsche Bank 24.
"There are currently, as far as I'm concerned, no discussions (with Allianz)," Clemens Boersig, Deutsche's acting chief financial officer, said. "There is nothing imminent, neither with Allianz nor with another partner."
Allianz, Germany's biggest insurance company, currently has retail distribution deals with Deutsche's rival Dresdner Bank AG (FDRB), in which it owns a 22 percent stake. Deutsche Bank 24 had expected a deal with Allianz by the end of the year. Earlier this year Allianz (FALZ) brokered an ultimately unsuccessful merger deal between Deutsche (FDBK) and Dresdner.
 Deutsche, which has been criticized for the way it has run its retail banking division - typically a lower-margin part of the banking business compared with investment banking or asset management services - said it will roll out its Deutsche Bank 24 model across Europe and aims to become the leading consumer bank across the continent. The bank said its retail arm's pretax profit tripled in the first nine months of this year.
The company outlined its strategy as it announced third-quarter profit rose almost nine-fold to  591 million ($504 million), from surging commission income on advising companies on joining the stock market, mergers and acquisitions.
Net income for the nine months to Sep. 30 soared to 4.37 billion, or 7.71 a share, from 1.83 million, or 3.41 a share, a year ago. Analysts polled by Reuters expected nine-month net profit in the region of 4.26 billion.
The Frankfurt-based bank said net commission income jumped 73 percent to 8.8 billion, boosted by profits from Bankers Trust Corp, the U.S. bank bought by Deutsche last year. It also benefited from the sale of a 2.9 percent stake in Allianz for 2 billion in June.
Chief Executive Rolf Breuer said in a statement the German bank was "confident" the final quarter "will achieve good results."
Trading income from its equities business rose 67 percent to 1.59 billion across the nine months. The company recently strengthened its market making position for equities with an agreement to acquire U.S. online brokerage National Discount Brokers Group, making it one of the top five Nasdaq market makers.
NDB's market-making arm, NDB Capital Markets Corp., is a leading market maker and generates nearly two-thirds of the firm's revenue. It makes markets in over 4,000 Nasdaq and OTC securities.
Deutsche's asset management business improved its pretax profit to 571 million from 162 million, as funds under management jumped about 19 percent to 996 million by the end of September.
"The results are over my expectations in the operating area," said Bankgesellschaft Berlin analyst Alexander Plenk. "They are very, very positive. The third quarter shows that Deutsche can still earn money in their trading operations even in difficult market conditions."
Trading conditions in the third-quarter were particularly difficult for the telecom and technology sector, which came under pressure amid concerns profits would miss targets.
Shares in Deutsche Bank fell 1.27, or 1.3 percent, to 95.21 in late trade in Frankfurt, having spent much of the session in positive territory. 
--from staff and wire reports
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