Revenues rose at the domestic German and international private banking businesses of the lender. Assets under management also gained in the quarter.

The private banking arm of Deutsche Bank yesterday reported an 11 per cent year-on rise in net revenues in the second quarter of 2023, standing at €2.4 billion ($2.66 billion). 

The Frankfurt-listed lender said growth was caused by higher revenues from deposit products, higher net interest margins but partly offset by lower fee income and lower loan revenues in an environment of higher interest rates. 

Revenues in the German part of the private bank rose 16 per cent to € 1.5 billion in Q2, 2023; revenues in the international private bank rose 4 per cent to €865 million, or 6 per cent if adjusted for the non-recurrence of revenues of about €15 million following the sale of Deutsche Bank Financial Advisors in Italy in the fourth quarter of 2022, Deutsche said in a statement. 

Assets under management in the private bank rose by €11 billion to €541 billion during the quarter, driven largely by net inflows of €7 billion which included inflows into investment products of €4 billion and deposits of €3 billion.

For the first six months of 2023, net revenues gained 10 per cent to €4.8 billion. 

Asset management
Asset management net revenues were €620 million in the second quarter, slipping 6 per cent on a year ago. This was mainly caused by a 6 per cent drop in management fees to €580 million, reflecting lower average assets under management compared with the prior year period, and higher allocated funding charges, partly offset by an 82 per cent rise in performance and transaction fees to €57 million, driven largely by alternatives. Assets under management rose by €19 billion to €859 billion during the quarter. 

Group results
For the entire banking group, Q2 pre-tax profit fell 9 per cent year-on-year to €1.4 billion. 

Excluding non-operating costs, the profit figure would have been up 25 per cent at €2.1 billion. After tax, profit was €940 million.

In the quarter, non-interest costs rose 15 per cent to €5.6 billion. On an adjusted basis, costs rose 4 per cent to €4.9 billion.

The bank had a Common Equity Tier 1 ratio – a standard international measure of capital buffer – of 13.8 per cent. Deutsche said it had a liquidity coverage ratio of 137 per cent, a surplus of €55 billion. (The LCR is designed to ensure that banks hold a sufficient reserve of high-quality liquid assets to allow them to survive a period of significant liquidity stress lasting 30 calendar days.)