Letter of credit (L/Cs) business has eased Deutsche Bank's losses in the first quarter of this year.

The bank reported a net loss of EUR141 million, or 27 cents per share, for the first quarter of 2008, and a loss before income taxes of EUR254 million.

Markdowns

Deutsche Bank reported markdowns of EUR2.7 billion on leveraged loans and loan commitments, commercial real estate and residential mortgage-backed securities.

The bank reported a gain of EUR77 million, however, from widening credit spreads on certain Deutsche Bank debt.

Difficult conditions

In financial market conditions that Deutsche Bank's chairman Josef Ackermann described as "the most difficult in recent memory", the bank nevertheless reported solid results in its global transaction banking.

It generated net revenues of EUR661 million in the first quarter 2008, an increase of EUR49 million, or 8 % up on the first quarter of 2007.

More L/C business

The rise was predominantly attributable to activities in trade finance, domestic custody and cash management, the bank said.

In trade finance, revenues increased primarily from higher volumes in L/C business and stronger guarantee business in the Asia/Pacific region and in Europe, according to Deutsche Bank.

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