As a result, in the first nine months, net new client loans rose to €9 billion and net inflows of investment products to €12 billion, it said in a statement today.

Net revenues in the Private Bank Germany rose by 1 per cent year-on-year, while the international private bank’s net revenues declined by 2 per cent, or 1 per cent when specific items were stripped out.

Private bank assets under management rose by €5 billion in the quarter, driven by net inflows of €5 billion and market appreciation, partially offset by the negative impact of currency translation effects. Net inflows in investment products were €3 billion.

Noninterest costs of €1.9 billion were broadly stable compared with the prior year. Noninterest expenses in the third quarter of 2020 included €183 million of restructuring and severance costs primarily for the head office and branch network restructuring compared with €9 million euros in the prior year period. However, when transformation charges are taken out, costs were €1.7 billion, falling by 10 per cent from a year ago. Compensation costs fell as workforce numbers were cut. 

The private bank for Germany achieved approximately €115 million of merger-related cost synergies in the quarter and approximately €260 million euros in the first nine months of the year.

Provision for credit losses was €174 million euros or 30 basis points of loans reflecting the impact of the pandemic, rising from €55 million a year earlier.

The entire banking group’s results demonstrated a sharp turnaround, reflecting restructuring efforts to some extent. Deutsche Bank said that profit in the third quarter of 2020 was €309 million, compared with a net loss of €832 million euros in the third quarter of 2019. Profit before tax was €482 million, bouncing back from a loss before tax of €687 million euros in the prior year quarter. Net revenues grew by 13 per cent year-on-year, accompanied by a 10 per cent cut to noninterest costs a year earlier.