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Deutsche's Private Bank Net Revenue Dips

Tom Burroughes

24 July 2024

today reported a 3 per cent year-on-year decline for private bank net revenues in the second quarter of 2024, at €2.2 billion ($2.38 billion), weighed by a 7 per cent fall in net interest income in an environment of stabilising interest rates. The NII impact was partly offset by the growth of investment products.

Personal banking revenues fell 7 per cent on a year ago. The impact of higher hedging costs, and higher funding costs, including the impact of the discontinuation of remuneration for minimum reserves by the European Central Bank, was partly offset by double-digit growth in deposit revenues and growth in lending revenues, the Frankfurt-listed group said in a statement today. 

Revenues in wealth management and private banking rose 3 per cent on a year ago. Double-digit growth in lending and higher revenues in investment products more than offset a decline in deposit revenues. 

The bank said assets under management grew by €7 billion during the quarter to €613 billion, driven by net inflows of €7 billion. 

For the first six months of 2024, private bank net revenues were €4.7 billion, down 3 per cent on a year ago.

Group figures
Across all parts of the Deutsche Bank businesses, it made a pre-tax profit €1.7 billion, excluding a provision for Postbank litigation, compared with €1.4 billion in the second quarter of 2023. However, the bank made a loss, attributable to shareholders, of €143 million, against a comparable profit of €763 million a year ago, as it was hit with a 20 per cent rise in noninterest expenses versus the same quarter a year ago, and a 19 per cent rise in provision for credit losses.

Deutsche Bank said it had a Common Equity Tier 1 capital ratio – a standard international measure of a bank’s shock absorber – of 13.5 per cent.