Germany's largest bank reported that its assets under management rose during the quarter, aided by inflows into deposits and investment products.

Deutsche Bank yesterday reported an unchanged set of private bank net revenues for the third quarter of 2024, at €2.3 billion ($2.48 billion).

Net interest income fell by 6 per cent in an environment of stabilising interest rates; this was partly offset by growth in investment products, reflecting the private bank’s strategy of growing noninterest income, the Frankfurt-headquartered lender said in a statement.

Revenues in personal banking slipped 5 per cent on a year earlier, caused by the effect of higher hedging and funding costs, partly resulting from the discontinuation of remuneration for minimum reserves by the European Central Bank, and lower lending revenues.

Revenues in wealth management and private banking rose by 5 per cent in Q3 on a year before, benefiting from double-digit growth in lending and investment products. This more than offset a decline in deposit revenues. 

Assets under management grew by a further €13 billion, including net inflows of € 8 billion consisting of €5 billion in deposits and €3 billion in investment products. 

For the first nine months, private bank net revenues were €7.0 billion, down 2 per cent year-on-year. 

Group results
The entirety of Deutsche Bank logged a pre-tax profit of €2.3 billion in Q3, rising by almost a third (31 per cent) on a year ago. This gain included a partial release of about €440 million in litigation provisions resulting from progress on settlements relating to the bank’s takeover of Postbank AG. Excluding the Postbank litigation release, the figure was €1.8 billion, up 6 per cent. Noninterest costs were €4.7 billion in the third quarter, down 8 per cent from €5.2 billion in the third quarter of 2023. Adjusted costs of €5 billion were in line with the bank’s guidance, it said.

Provision for credit losses doubled to €494 million in the quarter, up from €245 million a year earlier.

Deutsche Bank said its Common Equity Tier 1 (CET1) capital ratio – its shock absorber capital – was 13.8 per cent in the quarter, up from 13.5 per cent in the previous quarter. This development reflected strong third-quarter earnings and the bank’s adoption of transitional rules for unrealised gains and losses of certain debt instruments.

The workforce comprised 90,236 internal full-time equivalents (FTEs) at the end of the third quarter, a rise of 766 in the quarter.