Deutsche Asset & Wealth Management (Deutsche AWM) has reported third quarter income before income taxes of EUR263m, down 25% compared to EUR287m in the corresponding quarter of last year.
For the third quarter ended 30 September 2015, net revenues dropped by 5% to EUR1.2bn compared to the third quarter of 2014. Noninterest expenses were down 4% to EUR937m compared to EUR977m a year earlier.
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Deutsche bank said that transaction fees and other non-recurring revenues declined year-on year, reflecting lower performance fees in Alternatives and decreased transactional revenues from wealth management following lower volumes from alternative products across most regions.
The unit’s invested assets stood at EUR1.1 trillion, down 4% versus the prior quarter of 2015, reflecting lower market valuations and negative FX impact, partly offset by net new assets of EUR0.6bn.
Overall, Deutsche Bank group posted a massive net loss of EUR6bn for the third quarter of 2015 primarily due EUR5.8bn in non-cash charges for the reduced value of its investment bank and Postbank.
The lender has also booked a EUR649m charge as it wrote down its 19.99% stake in China’s Huaxia Bank as well as EUR1.2bn in additional litigation charges.
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By GlobalDataThe bank has now announced plans to lay off 9,000 employees and exit 10 countries as part of its strategy to restore profitability.
As a part of the strategy, the bank will withdraw from Argentina, Chile, Mexico, Uruguay, Peru, Denmark, Finland, Norway, Malta as well as New Zealand.
According to Deutsche Bank co-CEO John Cryan, the measures are expected to generate gross cost savings of about EUR3.8bn ($4.6bn).
In addition, the bank plans to slash about 6,000 external contractor positions by 2020, and sell assets with 20,000 more workers over the next 24 months. It is also planning to move trading operations from Brazil to global and regional hubs.
