Reports
Q4 Wealth Revenues Drop At Deutsche Bank, PWM Revenues Rose In 2011
Deutsche Bank said its asset and wealth management arm logged revenues of €909 million (around $1.197 billion) in the last three months of 2011 - a 10 per cent drop from a year before.
Deutsche Bank said its asset and wealth management arm logged revenues of €909 million (around $1.197 billion) in the last three months of 2011, a 10 per cent drop from a year before, with private wealth management revenues down by €95 million, mainly caused by non-recurring items in 2010 relating to its purchase of the Sal Oppenheim business.
For the whole of the year, private wealth management revenues rose by €51 million, however.
Poor market conditions and low client activity also hit earnings, Germany’s biggest bank said in a statement today.
In asset management, net revenues declined by €6 million compared to the fourth quarter of 2010. Revenues from discretionary portfolio management/fund management were down by €58 million due to lower asset based fees and performance fees resulting from negative market conditions and flows.
This decrease was partly offset by a €52 million revenue hike in asset management’s other products, primarily due to gains on sales of RREEF investments.
For the whole of last year, asset and wealth management recorded pre-tax income of €767 million, surging from €210 million in 2010.
This division’s investment assets stood at €813 billion as of 31 December 2011, up €33 billion compared to 30 September. During the fourth quarter of 2011, invested assets in private wealth management rose by €5 billion, mainly driven by foreign currency movements during the period, partly offset by net outflows of €3 billion resulting from “certain customer relationships”, the bank said.
For the Frankfurt-listed banking group as a whole, it made net income of €4.3 billion for the whole of last year, up from €2.3 billion in 2010. However, in the final three months of 2011, net income slumped to €186 million from €605 million a year earlier.
At the end of last year, the bank’s Core Tier 1 capital ratio was 9.5 per cent.
