Financial Results
Strong Wealth, Asset Management Results A Ray Of Sunshine For Deutsche Bank

Deutsche Bank, Germany’s largest bank which has a significant
presence in the Americas, said today that its Deutsche
Asset & Wealth Management arm enjoyed one of its
strongest-ever
performances, logging pre-tax income of €283 million ($390.2
billion) in the
third quarter of 2013, a 151 per cent year-on-year increase
attributable to a
12 per cent decline in non-interest expenses.
In the third quarter, the cost/income ratio at this business
division fell sharply to 78 per cent in Q3 compared with 90 per
cent in the
same three months of 2012.
Net revenues were €1.264 billion, a 29 per cent year-on-year
rise, the Frankfurt-listed firm said in a statement today.
Invested assets fell by €9 billion to €934 billion,
primarily due to foreign exchange rate movements and outflows of
low margin
assets, partially offset by positive market effects, Deutsche Bank said.
The generally strong performance of the wealth management
business stands in sharp contrast to Deutsche Bank as a whole; it
reported pre-tax
group income of €18 million, a figure including €1.2 billion
of
litigation-related charges. Core bank pre-tax income was €1.2
billion. Net
income slumped from €1.127 billion a year ago; the cost-income
ratio of the
entire business rose to 93 per cent in the quarter, a rise from
81 per cent a
year ago.
Among further details of the wealth and asset management
business, Deutsche Bank said net revenues from advisory/brokerage
services fell
by €16 million, or 8 per cent, suffering from lower client
activity in the
current quarter. Net revenues from credit products decreased by
€10 million, or
9 per cent, which was more than offset by an increase in revenues
from deposits
and payment services of €16 million, or 32 per cent compared to
the same period
2012.
“In the third quarter we met several challenges. We took
substantial litigation charges and saw reduced profits in
investment banking,
leading to a lower quarterly result. Notwithstanding this, we
made progress in
key areas. In this quarter alone, we achieved approximately 15
per cent of our
2015 balance sheet reduction target of €250 billion,” said Jürgen
Fitschen and Anshu
Jain, co-chairmen of the management board.
“Our Operational Excellence Program remained on track in
delivering cost savings and we sustained investments in our
control functions.
In addition, Deutsche Asset & Wealth Management produced one
of its
strongest ever quarters,” they said.
Within the private and business clients segment, Deutsche
Bank reported pre-tax income of €347 million, reflecting what it
says is a
seasonal slowdown and the non-recurrence of several non operating
items.