Net Revenues Rise At Deutsche Bank, Acquisitions Push Up Expenses

Tom Burroughes

1 February 2011

Deutsche Bank, which last year expanded its wealth management operations with the purchase of Sal Oppenheim, said yesterday it expects total net revenues across the entire group to be around €7.4 billion (around $10.2 billion) in the final quarter of 2010, up from €5.5 billion a year ago.

Due to first time consolidation of Deutsche Postbank and acquisition-related costs as well as accelerated investments made to realign the bank - such as the Sal Oppenheim deal - Deutsche Bank’s non-interest expenses rose to €6.3 billion, against €4.2 billion in the same three months of 2009, the firm said in a brief statement ahead of full-year results to be released on 3 February.

Due to these developments, the Frankfurt-listed bank said it expects to make a pre-tax income in Q4 of about €700 million, down from €756 million, and a net income of approximately €600 million (Q4 2009: €1.3 billion, reflecting special tax items).