After reporting a record loss throughout 2009, Deutsche Bank, posted its fourth straight quarterly profit on a rebound, in trading.

It reported a net income of 1.3 billion Euros in the fourth quarter after a loss of 4.8 billion Euros in the rest of the year.

It has gained 45.82 Euros in Frankfurt trading over the last 12 months, compared with a 57 percent gain in the 52-company Bloomberg Europe Banks and Financial Services Index.

Its fourth-quarter net income reflected a tax benefit of 554 million Euros.

"We used these good results to bolster our capital base, and our capital ratios are stronger than ever", said Josef Ackermann, Deutsche's CEO.

At the World Economic Forum in Davos, last week, Ackermann said that President Obama's proposed financial industry regulations would have a "marginal impact" on Deutsche Bank because the German company has exited the bulk of activities targeted in the proposal. He also voiced opposition to breaking up of large banks.

"Deutsche Bank has done well in its peer group, but the problem is that the whole industry is under a lot of pressure from regulators", said Schroder's Lynch. "There's an existential risk to the business model", he added.