Shares in Germany's largest bank rose more than 2 per cent today after Deutsche Bank revealed a smaller than expected fall in net income in the final three months of last year, despite last year's collapse in global credit markets.

Deutsche Bank reported a 48 per cent fall in income to €953 million (£711 million), ahead of expectations, and said that it had no further net writedowns on its investments in sub-prime, collateralised debt obligations or mortgage-backed securities.

Last year the bank wrote down $2.2 billion worth of assets hit by the US sub-prime mortgage market collapse.

Josef Ackermann, the chief executive of Deutsche Bank, said: "Those trading businesses in which we reported losses in the third quarter produced a positive result in the fourth quarter."

He said, however, that he could not rule out further writedowns. "Uncertainty remains as to how large the impact of the turbulence will be on global economic growth over the next few months and what writedowns will still be necessary on the books of the banks concerned," he said.

Mr Ackermann, who turned 60 today, said that fourth-quarter writedowns on leveraged finance business would be no more than $50 million (£25 million).

The bank's net revenue in its fourth quarter was €7.29 billion, lifted by a 4.9 per cent increase in pre-tax profit in the consumer banking, asset management and transaction banking business.

Deutsche Bank reiterated its pre-tax profit target of €8.4 billion for 2008, excluding one-off costs and charges, and revealed plans to raise its dividend by 13 per cent to €4.50 per share.

Mr Ackermann also confirmed that his company would be interested in acquiring Deutsche Postbank should it be put up for sale.

Deutsche Post, the German postal service which holds 50 per cent plus one share in Postbank, said that it will examine all options in regard to the future of its banking unit this year.

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