Deutsche and Countrywide post steep losses

Both Deutsche Bank AG and Countrywide Financial Corp. reported first-quarter losses today stemming from the effects of the mortgage crisis. Deutsche Bank reported its first quarterly loss in five years today ,due to $4.2 billion in write-downs resulting from the credit crunch. The Frankfurt, Germany-based bank reported a first-quarter loss of $396 million, or 42 cents per diluted share, compared with a $4.7 billion profit, or $7.76 per diluted share, in the year-ago period. “In the first quarter of this year, financial market conditions were the most difficult in recent memory,” Dr. Josef Ackermann, chairman of Deutsche Bank’s management board, said in a statement. Countrywide Financial reported its third-straight quarterly loss as the mortgage lender was hampered by more than $3 billion in write-downs stemming from the subprime meltdown. The Calabasas, Calif.-based company reported a first-quarter earnings loss of $893 million, or $1.60 per share, compared with a net income of $434 million, or 72 cents per share, in the first quarter of 2007. Analysts at Reuters of New York had forecasted an earnings loss of 12 cents a share. Countrywide, which agreed in January to be purchased by Charlotte, N.C.-based Bank of America Corp. for $4 billion (InvestmentNews Jan. 11), also saw its total assets drop to $199 million at the close of the first quarter compared with $207 million a year-ago.