Financial Results

Deutsche's Private Banking Revenues Rise

Editorial Staff 5 February 2024

Deutsche's Private Banking Revenues Rise

The Frankfurt-listed lender, operating in multiple regions of the world, said its overall pre-tax tax profit for 2023 was the highest in 16 years.

Deutsche Bank late last week reported private banking net revenues of € 9.6 billion ($10.4 billion) for 2023, rising 5 per cent on a year earlier, and up 10 per cent on an adjusted basis.

Higher revenues from deposit products, caused by higher net interest margins, more than offset lower commissions and fee income resulting from contractual and regulatory changes and the non-recurrence of revenues from Deutsche Bank Financial Advisors after its divestment, the Frankfurt-headquartered lender said in a statement.

Revenues in the German private bank entity rose by 14 per cent to €6.1 billion, while revenues in the international private bank fell 8 per cent, but were up 3 per cent excluding specific items. 

Private bank assets under management rose €40 billion last year reachimg €559 billion, largely driven by net inflows of €29 billion. 

In the fourth quarter, private bank net revenues were €2.4 billion, down 4 per cent on the same period a year earlier or rising 9 per cent excluding specific items. 

At the group level, Deutsche bank said its pre-tax profit for 2023 was €5.7 billion, rising 2 per cent on a year earlier. Revenues grew 6 per cent to €28.9 billion; non-interest costs stood at €21.7 billion, rising 6 per cent.

Capital generation enabled Deutsche, it said, to make €1.6 billion of distributions in the first half of the year.

At the end of December 2023, Deutsche had a Common Equity Tier 1 capital ratio – a bank’s capital “shock absorber” – of 13.7 per cent.

“We have achieved our highest profit before tax in 16 years, delivered growth well ahead of target and maintained our focus on cost discipline while investing in key areas. Our strong capital generation enables us to accelerate distributions to shareholders. This gives us firm confidence that we will deliver on our 2025 targets,” Christian Sewing, Deutsche’s chief executive, said.

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