Financial Results

Deutsche's Private Banking Arm Logs Rise In Q3 Revenues

Editorial Staff 26 October 2023

Deutsche's Private Banking Arm Logs Rise In Q3 Revenues

The Frankfurt-listed group gave a broadly robust set of figures for its domestic German private bank and the international private banking side.

Net revenues at the private banking arm of Deutsche Bank rose 3 per cent in the third quarter of 2023 from the same three months a year ago, reaching €2.3 billion ($2.43 billion). 

The rise would have been 9 per cent if adjusted for the non-recurrence of Sal Oppenheim workout activities in the same quarter a year ago. (In 2017 Sal Oppenheim’s private wealth management division was integrated into Deutsche’ private and commercial bank and the old Sal Oppenheimer name came to an end. Deutsche originally bought that business in 2010.)

In other figures, Frankfurt-listed Deutsche Bank said higher revenues from deposit products, driven by higher net interest margins, more than offset lower fee income, lower loan revenues and the negative year-on-year impact of foreign exchange rate movements. 

Revenues in the German private bank arm rose 16 per cent to €1.5 billion. Revenues in the international private bank, meanwhile, slid by 13 per cent to € 845 million, or rose 2 per cent if adjusted for the non-recurrence of €110 million in revenues from Sal Oppenheim workout activities and of around €15 million from Deutsche Bank Financial Advisors in Italy. That business was divested in the fourth quarter of 2022. There were negative foreign impacts of around €20 million. 

Assets under management at the private banking business rose by €5 billion to €547 billion during the quarter, as net inflows of €9 billion and positive foreign exchange movements of €3 billion more than offset a negative impact of €7 billion from lower market levels.

Across the whole of Deutsche Bank, net revenues rose 6 per cent year-on-year to €22.2 billion; non-interest costs rose 7 per cent to €16.2 billion including non-operating costs of €943 million. The bank had a Common Equity Tier 1 ratio of 13.9 per cent and a liquidity coverage ratio of 132 per cent. (The LCR refers to banks having to hold an amount of high-quality liquid assets which are enough to fund cash outflows for 30 days. This ratio came under renewed scrutiny earlier this year when banks such as Silicon Valley Bank crumbled amid a stampede of client outflows.)

The lender said that in Q3 2023 it logged net inflows of €39 billion across the private bank and in its asset management arm.

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