Deutsche Bank said its second quarter revenues in private clients and asset management rose 11 per cent to €2.6 billion. The private and business clients division, which includes retail banking, drove the growth with a 15 per cent increase in revenues to €1.4 billion. Revenue in asset and wealth management rose seven per cent to €1.1 billion. But the division was outpaced by the German bank’s corporate and investment banking operations, which put on 29 per cent revenue growth, especially helped by strong sales and trading of both debt and equity products. In Private Clients and Asset Management Group Division (PCAM), net revenues were €2.6 billion in the second quarter 2007, an increase of 11 per cent against the prior year quarter. Non-interest expenses were €1.9 billion, an increase of seven per cent on the second quarter 2006, to leave pre-tax profits of €588 million for the second quarter, a 19 per cent increase on last year's quarter. PCAM’s invested assets grew by €26 billion to €962 billion during the second quarter 2007. Net new money was €14 billion, of which €11 billion was generated by Asset and Wealth Management (AWM) and €3 billion by Private & Business Clients (PBC). The effect of market appreciation was €21 billion, while the remainder of the change in invested assets was mainly driven by foreign exchange rate effects and the sale of a business in Asset Management (AM) Australia. For the first half of 2007, net new assets were €29 billion, of which €19 billion were attributable to AWM and €10 billion to PBC. In the second quarter, AWM reported net revenues of €1.1 billion, an increase of seven per cent on the previous year quarter. Fund management revenues in Asset Management decreased by 12 per cent. In Private Wealth Management (PWM), fund management revenues grew by 25 per cent, or €20 million, compared to the previous year quarter, due to a higher invested asset base as a result of the Tilney acquisition, as well as from organic growth and market performance. Brokerage revenues were €245 million, up 25 per cent. Non-interest expenses in the second quarter 2007 were €845 million, an increase of two per cent on the same quarter in 2006, as higher expenses due to a rise in headcount and higher policyholder benefits and claims were partly offset by lower performance related compensation charges. AWM's pre-tax profit was €292 million, an increase of 21 per cent, compared to the same period last year. For the first half of 2007, AWM’s pre-tax profit was €480 million, an increase of one per cent on the first six months of 2006. Net revenues in Private & Business Clients (PBC) were €1.4 billion in the second quarter 2007, an increase of 15 per cent on the second quarter 2006. Loan and deposit revenues were up 15 per cent, primarily driven by higher volumes due to the acquisitions of Berliner Bank and norisbank. Revenues from portfolio/fund management remained stable. Non-interest expenses in the second quarter 2007 were €1 billion, an increase of 12 per cent on the second quarter 2006. The main drivers for this increase were the acquisitions, including integration-related expenses, and continuing investments in growth regions, especially in India and Poland. Pre-tax profit in PBC was €297 million, an increase of 18 per cent compared to the second quarter 2006. Invested assets grew by €8 billion to €197 billion and loan volumes by €2 billion to €84 billion. For the first half year 2007 pre-tax profit was €590 million, an increase of six per cent on the first half of 2006. Invested assets grew by €22 billion to €197 billion, of which net new money was €10 billion. Loan volumes increased by €6 billion to €84 billion in the same period. Overall, Deutsche Bank’s net profit in the second quarter amounted to €1.78 billion, up from €1.36 billion a year earlier. "All our business divisions contributed to this growth. As a result, we delivered a very strong first half-year, clearly demonstrating the power and resilience of our platform," said chief executive Josef Ackermann.