Unlike many of its global rivals, Deutsche Bank did still manage to make a profit in the quarter.

Pre-tax profits came in at 642m euros (£506m), well down on the 2.7bn euros it made in the same period last year.

Almost half of the write-downs came from investments in debt backed by residential mortgages.

Exposure to monoline insurers, which insure bonds, as well as poor investments in commercial property, made up much of the rest of the write-downs.

"We remain cautious for the remainder of 2008," said chief executive Josef Ackermann.

BBC