Financial Results

Deutsche Bank Private Bank Revenues Slip In Q3, AuM Gain

Tom Burroughes, Group Editor, 28 October 2021

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The German and international private banking arms of the Frankfurt-listed bank both showed positive sets of results during the quarter.

Deutsche Bank yesterday reported a slight year-on-year (-2 per cent) drop in total net revenues, reaching €1.999 billion ($2.322 billion) in the three months to 30 September. 

As shown with other banks, a provision for credit losses expected from the pandemic last year narrowed from €174 million to €92 million. Pre-tax profits stood at €158 million in Q3, from zero a year ago.

Assets under management were €541 billion, by €65 billion from a year ago, and net flows were €6 billion, versus €5 billion in Q3, 2020, Deutsche Bank said in a statement.  

The Frankfurt-listed firm’s figures also show that its total number of private bank employees fell to 28,927, shrinking by 1,757 from a year ago.

International, German
In Germany, the private bank generated net revenues of €1.2 billion, up 1 per cent versus the prior year quarter excluding the impact of the BGH ruling, the group said. (On 27 April 2021, the German Federal Court of Justice (BGH) ruled that new or amended clauses in banks' general terms and conditions (AGB Banken) are void if the bank fails to obtain the customer's consent to the change.)

The firm said that continued headwinds from deposit margin compression were compensated by growth in loan revenues and in fee income from investment products.

In the international private bank, net revenues were €803 million, rising by 6 per cent year-on-year. Deutsche said that “sustained” new business growth in investment products and loans, supported by hires of relationship managers in previous periods, more than offset continued headwinds from lower interest rates. 

Group results
Across the whole Deutsche Bank business, it reported adjusted profit before tax of €1.2 billion, rising by 39 per cent. 

Deutsche said it had a Common Equity Tier 1 capital ratio of 13.0 per cent, in line with guidance. Provision for credit losses fell 57 per cent year-on-year to €117 million.

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