Deutsche Bank reported its net profit more than doubled to 3.78 billion euros ($3.45 billion) in the first half of 2000 from 1.76 billion euros in the year-earlier period, exceeding expectations. Deutsche Bank said the result was boosted by about two billion euros in tax-free income from the planned sale of a 2.9% stake in insurer Allianz AG. The German bank also said its pretax profit more than doubled to 4.89 billion euros from 2.23 billion euros in the 1999 first half. Adjusted earnings per share, excluding goodwill amortization, rose to 6.58 euros from 3.06 euros.

Analysts had forecast the bank's net profit between 3.5 billion euros to 3.6 billion euros, and its pretax profit between 4.6 billion euros and 4.75 billion euros. Return on equity before taxes, excluding goodwill amortization, increased 46.3% in the six-month period from 25.8% in the same period a year earlier. Risk provisions, meanwhile, dropped 39% to 144 million euros from 236 million euros in the year-earlier period. The data are not directly comparable with the first half of 1999, however, due to the consolidation of Banker's Trust, analysts said. A spokesperson for Deutsche Bank said Banker's Trust figures were included only in one month of last year's first-half report. The German bank took over Banker's Trust June 4, 1999.

Deutsche Bank also said it is revamping its retail banking operations, beginning by folding all European retail activities into its Bank 24 online unit. France's Societe Generale reported net profit shot up 28% to 1.64 billion euros in the first half from 1.28 billion euros in the same period a year earlier, buoyed by strength in its retail banking, investment banking and asset management divisions. The figures were slightly above most analysts' expectations of net profit of between 1.5 billion euros and 1.6 billion euros.

Net banking income rose 21% to 7.06 billion euros, while gross operating profit increased 30% to 2.34 billion euros, despite a 17% increase in costs. In common with other banks, Societe Generale has seen profit from retail banking rise sharply, thanks to strong economic growth in France. Its investment-banking division has also benefited from a boom in stock markets both at home and elsewhere.

-- (The Wall Street Journal)