Deutsche Bank AG took 2.3 billion euros ($3.6 billion) in residential mortgage-backed securities writedowns during the second quarter but generated a net profit of 645 million euros.

Despite the profit, an analyst at Standard & Poor's lowered S&P's long-term counterparty credit ratings on the company, citing the addition of the most recent writedown to others and the company's performance relative to that of its peers.

"The downgrade reflects that we no longer consider Deutsche Bank's performance to be materially stronger than that of the leading peers in the currently difficult operating environment," said S&P credit analyst Bernd Ackermann. "Although the bank's performance is still reasonably sound, its earnings for the past 12 months have been affected by 7.1 billion euros [$11.0 billion] in major markdowns, impairments, and credit-valuation adjustments."

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.