The expectation of a quarterly loss of 4.8 billion euro or $6.3 billion means Deutsche Bank will also mark its first full year loss in 50 years.

Germany's largest bank is expected to post a net loss of 3.9 billion euros or $5.1 billion in the full 2008. The full earnings announcement will be given in Feb. 5.

CEO Joseph Ackerman said the firm's investment banking operations were affected mainly by unprecedented volatility and the cutting of risk in illiquid markets, according to Financial Times.

Experts believe the current profit warning could mean the beginning of more problems for other banks in Europe which have suffered the effects of the economic crisis. On Jan 13, the German Government announced an stimulus package of $106 billion which in part helps boost the financial sector.

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