Deutsche Bank reduced its exposure to problematic commercial real estate loans to less than half its previous size in 4Q08, but it still estimates it will take a €4.8 billion ($6.3 billion) after-tax loss for the period from other writedowns.

The German company said its commercial real estate loans (held on a fair value basis, net of risk reduction) had declined to less than €3 billion by the end of the fourth quarter from €8.4 billion euros at the end of the third.

Deutsche Bank said its preliminary loss estimates for the fourth quarter "reflect exceptional market conditions, which severely impacted results in the sales and trading businesses, most notably in credit trading including its proprietary trading business, equity derivatives and equities proprietary trading."

It said the loss "also reflects exposure reduction and other de-risking measures, a significant increase in provisions against certain of our monoline counterparties, and certain other exceptional gains and charges, including reorganization charges."

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