FRANKFURT, Germany (AP) -- Deutsche Bank AG said Wednesday it will write off about $3.12 billion in losses from the U.S. mortgage morass, but that gains from asset sales and tax credits will allow Germany's biggest bank to report a third-quarter profit of about $1.98 billion.

In the face of the 2.2 billion-euro writedown, the latest to hit major banks in the United States and Europe, Chief Executive Josef Ackermann remained upbeat about the bank's future and the industry.

"Despite a challenging quarter for our investment banking franchise, our 'stable' businesses continue to perform well," Ackermann said in a statement. "We see substantial opportunities in investment banking after this period of correction."

The news sent Deutsche Bank shares higher to close at 95.51 euros ($135.56), or up 2.14 percent in

AP
Stocks Retreat After Economic Data
Wednesday October 3, 6:10 pm ET
By Tim Paradis, AP Business Writer
Stocks Retreat After Economic Data Offer Little Reason to Stanch Losses

NEW YORK (AP) -- Wall Street extended its pullback Wednesday as investors, retrenching from an optimistic stance early in the week, waited to see how well corporate earnings and the job market have held up in an uneven economy.