Just weeks ago, investors were discussing Germany's potential bailout plans for national champion Deutsche Bank. Now, the Frankfurt-based lender has surprised investors and clients with a profitable quarter.

Deutsche Bank swung to a surprising third-quarter profit of 278 million euros from a loss a year ago. The result surprised analysts, who had been bracing for a 600-million-euro loss for the quarter.

The bank itself seems also to have been bracing for worse. CEO John Cryan enlisted three notable Deutsche clients, including the European head of renowned private equity house KKR.

The clients were on hand to attest to Deutsche’s solidity – and to put focus back on the bank’s business after weeks of rampant rumors about settling a mortgage misselling scandal in the U.S.

«KKR has been working with the bank for 30 years. We think all the commotion over Deutsche Bank is overblown. The bank is far stronger than in 2008», KKR executive Johannes Huth was quoted by Cryan in a note to staff.

John Cryan presser 500

Cryan (pictured above) needs big-ticket clients to speak out for the bank to avoid a potential exodus of business in Deutsche’s cash-generating businesses like private banking, investment banking and corporate loans in Germany.

Investors have already sent the bank’s shares down almost 40 percent percent this year, and demand for credit default swaps on Deutsche – or insurance policies against the lender's default – have surged.

Public Relations War

The bank has in effect been forced to wage a public relations war over its stability, which Cryan referred to in his letter to staff.

«In the past few months, a great deal has been said about us which deflects attention from our clients. It is our clients who need to be satisfied with us,» he said.

The quarterly result would have been better had not Deutsche boosted its legal reserves, or funds to make amends for past scandals, to 5.9 billion euros. Revenue also rose overall, including in its global markets business.

Withdrawal from Mexico

Cryan was cautiously optimistic, saying the bank is working towards resolving the U.S. probe.

The result shows that Deutsche Bank is capable of posting a profit, after a 6 billion euro write-down hit last year’s result.

«In spite of these achievements, I do not want to paint a flattering picture. We have a lot of work ahead of us. However, we have stable foundations and we have the strength to overcome the challenges of the coming months,» Cryan said in a note to staff.

Cryan plans to sell Deutsche Bank Mexico and Deutsche Securities to Mexico-based Investabank.