Deutsche Bank AG, Germany’s biggest bank, plans to expand its consumer banking and asset management operations to help boost pretax profit by 40% by 2008.

“We will aim to accelerate profitable growth by expanding our ‘stable’ businesses,” Chief Executive Officer Josef Ackermann said in a statement today before a meeting with investors in London. At the same time, the bank will build on its “competitive edge in corporate and investment banking,” he said.

Mr. Ackermann, who took over in 2002, has raised profit by cutting almost a quarter of the jobs, selling at least $18 billion in holdings and expanding investment banking to make the Frankfurt-based company the No.2 trader by revenue after New-York based Goldman Sachs Group Inc. The bank now makes almost twothirds of pretax profit at its securities unit.

“In investment banking the company is positioned well, but this business of course fluctuates with the markets,” said Helmut Hipper, who helps manage about $184 billion of assets, including Deutsche Bank shares, at Union Investment in Frankfurt. “I see more potential for improvements in asset management and retail banking.”

Deutsche Bank shares ended the day up 0.6% at 97.43 euros, after earlier rising as much as 2% on speculation the bank would raise its profitability target. The stock has gained 19% this year, beating the 17% gain in the 75-member Bloomberg Europe Banks and Financial Services Index, as net income rose 43% in the first six months.

Mr. Ackermann reiterated that Deutsche Bank is seeking a pretax return on equity, a measure of profitability, of at least 25% and “double-digit” growth in earnings per share.

Deutsche Bank also aims for a pretax profit, excluding one-time gains and expenses, of 8.4 billion euros in 2008, compared with 6 billion euros in 2005, Mr. Ackermann told investors today.