Updated from 5:49 a.m. ESTDeutsche Bank ( DB - Get Report) anticipates reporting a fourth-quarter loss of about 4.8 billion euros ($6.4 billion) because of what it called "exceptional market conditions," which hurt results most notably in its credit trading business. For full-year 2008, Germany's biggest bank said Wednesday it anticipates a loss of about 3.9 billion euros. Deutsche Bank said results in the fourth quarter also reflect "exposure reduction and other de-risking measures," an increase in provisions against certain of its bond insurers, and other reorganization charges. At the end of the fourth quarter, the bank anticipates its Tier 1 capital ratio will be in the region of 10%, its published target. This reflects a dividend accrual of 50 cents a share for 2008, the bank said. The bank said its capital strength allowed it "withstand these extremely difficult market conditions and to take necessary steps to de-risk our platform." "We have substantially reduced our exposures in leveraged finance, commercial real estate and other key credit market exposures, and expect no further material negative impact from these areas," said Chairman Josef Ackermann in a statement. "We have scaled back or exited trading strategies most affected by market turbulence. We have significantly reduced trading assets, and thus reduced balance sheet leverage." The bank reported a year-earlier fourth-quarter profit of 953 million euros and 2007 profit of 6.5 billion euros. The news comes on the heels of an announcement last week that the German government was taking a 25% stake in Germany's second-largest bank, Commerzbank, in a deal that gave Commerzbank another 10 billion euros in capital from the government's financial sector rescue fund. Deutsche Bank so far has not made use of the rescue fund, which has a total value of up to 500 billion euros.
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