Deutsche Bank AG said net income rose 45% in the first six months of the year, to $1.9 billion, buoyed by robust trading and market-related revenues plus a cut in corporate income taxes.
On an operating basis, excluding taxes and one-time events, profits rose 19.2%, to $2.1 billion, in line with analysts' expectations.
Trading income soared 79%, to $2.3 billion, more than in all of 1998. Some analysts have criticized Deutsche Bank's mix of business, which has tipped considerably in favor of more volatile, market-related activities. Analysts are leveling the same charge at Deutsche Bank as they used to at Bankers Trust Corp. in its heyday.
The $900 billion-asset bank, the world's largest, acquired Bankers Trust in June for $9 billion. Income from Bankers Trust operations was $212 million.
The market seemed pleased with the results. Deutsche Bank stock rose 34 cents, or 0.53%, to $65.07 in Wednesday trading.
Rolf E. Breuer, Deutsche Bank's chairman, said Wednesday that the bank could meet or beat the first half's performance for the remainder of the year, assuming financial markets escape the volatility that marred last fall.
"This is not just a lucky incident," Mr. Breuer said at a press conference. "As long as there are no disasters as we saw last fall, it is possible."
Deutsche Bank took a $848 million merger-related restructuring charge, mostly severance payments for 5,500 Bankers Trust and Deutsche Bank employees whose jobs were eliminated.
Two former Bankers Trust executives-chairman and chief executive officer Frank N. Newman and former chief financial officer Richard H. Daniel-got big payoffs. Both resigned shortly after the deal closed.
Mr. Newman's departing compensation package was $100 million, including $52 million in salary and bonus promised him in his five-year employment contract. Mr. Daniel received $25 million. The pay packages were included in the restructuring charge.
Deutsche Bank said the integration of Bankers Trust is proceeding on schedule and that "detailed business and implementation plans are being executed for all areas."
Total expenses rose 26%, to $6.7 billion, because of higher bonuses paid to Deutsche Bank's investment banking staff and costs related to the integration of Bankers Trust.
Fee income rose 27.5%, to $3.66 billion, and was driven by growth in securities businesses and asset management, the bank said.
The acquisition of Bankers Trust added a substantial base of capital markets operations in the United States as well as Europe, where Bankers Trust had acquired the equity underwriting business of National Westminster Bank in 1998.
Investment banking has been a major emphasis, despite the criticism. On Wednesday, Deutsche Bank named Bernard Attali as vice chairman of global investment banking operations in Europe, reporting to Peter Levene, chairman of the group in Europe. Mr. Attali was head of Bankers Trust's operations in France.
Separately this week, Deutsche won an exemption from the U.S. Department of Labor allowing it to continue to manage pension fund assets in the United States. Deutsche could have been barred from the business because of a scandal that took place in the mid-1990s in Bankers Trust's securities processing operations.
In March, Bankers Trust pleaded guilty in federal court on three felony counts of misappropriating $19.1 million in client funds in the unit.