March, 04, 2010

Germany's flagship lender has in past meetings signalled it expected margins in the investment banking industry to wane and said January had been "very good".DZ Bank analyst Matthias Duerr said in conversations with Stefan Krause "we got the impression that the CFO was talking more about normalised business in February. This confirms our expectations that we will see a very solid profit in Q1 but not a record result."

Following the meeting that the bank organised with a small group of analysts DZ Bank confirmed its "buy" rating and 54 euro target price.Georg Kanders, an analyst at WestLB, said Krause told analysts that "revenues had normalised" in February although margins had narrowed compared with year-earlier quarter.Kanders added that margins had been unusually high in the first quarter of 2009 and that the earnings in that period had been burdened with one-off writedowns on legacy assets like exposure to monoline insurers.

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