Private wealth management at Deutsche Bank will at least break even this year and contribute up to €150 million in earnings from 2014, the German bank's CEO has said.

Private wealth management at Deutsche Bank will at least break even in 2011 and contribute between €100 million (around $142 million) and €150 million in pre-tax earnings from 2014. The private and business clients arm will create medium-term revenue above €10 billion and profits of more than €3 billion, the firm’s chief executive said.

The wealth management arm will benefit from last year’s purchase of Sal Oppenheim, the European wealth management firm, Josef Ackermann told Deutsche’s annual general meeting yesterday, media reports said.

As reported in April, Deutsche Bank said its private clients and asset management division logged a big jump in income before income taxes, rising to €978 million (around $1.45 billion) in the first three months of 2011, compared to €184 million a year ago. Its private and business clients segment logged income before taxes of €788 million on increased business volume in all products.

Earlier this year, Deutsche Bank and LGT – the Liechtenstein private bank – abandoned negotiations over the sale of Deutsche’s BHF Bank business. Germany’s biggest bank and LGT had entered talks about the BHF sale last year.

Ackermann, talking about the Deutsche group overall, said its strong performance in the first quarter, when net profit rose 17 per cent to €2.1 billion, put the bank well on track for its full-year goal. The first-quarter result also showed the bank now "firmly stands on two pillars" - the investment banking business and an increasingly strong traditional banking business, notably in its German home market.

Ackermann said the bank's equity capital base is solid following its €10.2 billion capital increase in 2010 and that it doesn't currently have any concrete plans for further measures.