Reports
Private Client, Asset Management Arm Of Deutsche Enjoys Big Income Jump
Deutsche Bank today its private clients and asset management arm logged a big jump in pre-tax income in the first quarter of 2011.
Deutsche Bank said today that 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, “reflecting a broad-based increase in earnings capacity”, the German bank said.
The Frankfurt-listed bank's private and business clients segment logged income before taxes of €788 million on increased business volume in all products, impact relating to Hua Xia and strong Postbank contribution, the bank said in a statement.
The asset and wealth management corporate division reported net revenues of €1.0 billion in the first quarter, an increase of 21 per cent, compared to the same period in 2010.
Invested assets in AWM were €799 billion as of 31 March, down by €26 billion from the end of December last year.
The results come a few weeks after Deutsche Bank and LGT – the Liechtenstein private bank – announced they abandoned negotiations over the sale of Deutsche’s BHF Bank business. Germany’s biggest bank and LGT had entered talks about the BHF last year. Deutsche had acquired the BHF business with the €1 billion acquisition of its parent Sal Oppenheim wealth management firm in March last year.
Among other details in today's results statement, Deutsche said discretionary portfolio management/fund management revenues improved by €24 million, or 6 per cent, in asset management and by €14 million, or 14 per cent, in private wealth management. The gains were driven by favourable market conditions and higher asset valuations on asset based fees.
For the overall Deutsche Bank group, net income for the quarter was €2.1 billion, compared to €1.8 billion in the first quarter of 2010. Diluted earnings per share for the quarter were €2.13, versus €2.43 in the first quarter of 2010, as stronger net income was offset by the increased shares outstanding.
Income before income taxes was €3.0 billion in the quarter, up €228 million, or 8 per cent, compared to the first quarter of 2010. The core Tier 1 capital ratio was 9.6 per cent, up by nearly 100 basis points compared to 8.7 per cent at end-2010.
