Shares in Deutsche Bank, Germany’s biggest bank, tumbled 11% yesterday amid renewed fears over its exposure to the economic crisis and increased provisions against bad loans.

The concern over bad loans overshadowed a second successive quarter in which profits from investment banking helped Deutsche earn net income of more than €1bn (£863m).

Josef Ackermann, chief executive, said he was cautious about the global economic outlook. Deutsche raised its provisions against loan losses to €1bn, double the amount in the first quarter and about the same as its total provisions during 2008.

Financial Times