Financial Results

Private Client And Wealth Management Revenues Rebuilding At Deutsche

Nick Parmee, 4 February 2010

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As Deutsche Bank reported results for the fourth quarter and the full year 2009, the picture is beginning to look brighter in its private client and wealth management businesses.

In private clients and asset management, fourth quarter net revenues were €2.2 billion (about $3.1 billion), an increase of €177 million versus the fourth quarter of 2008.

In asset and wealth management, fourth quarter net revenues were €784 million, versus €588 million in the fourth quarter of 2008, primarily reflecting the non-recurrence of specific negative revenue items, the bank said in a statement. AWM captured net new money of €12 billion in the quarter, of which €9 billion was in asset management and €3 billion in private wealth management, compared to outflows of €23 billion in the fourth quarter of 2008.

AWM full year net revenues were €2.7 billion, versus €3.3 billion for 2008, primarily reflecting lower management fees and higher impairments in real estate asset management.

In private and business clients, fourth-quarter net revenues were €1.4 billion, essentially unchanged versus the fourth quarter 2008. PBC full-year net revenues were €5.6 billion, versus €5.8 billion in 2008. The decrease was mainly owing to brokerage revenues, down 29 per cent compared to 2008, reflecting wariness, the bank believes, on the part of retail investors in the wake of market turbulence in the fourth quarter 2008.

Overall for the year 2009, net income was €5.0 billion versus a net loss of €3.9 billion for the year 2008. Income before taxes was €5.2 billion, versus  €5.7 billion in 2008.

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