Deutsche Asset & Wealth Management (Deutsche AWM) posted a pre-tax income of EUR291m for the first quarter of 2015, up 75% compared to the corresponding quarter of last year.
For the quarter ended 31 March 2015, net revenues jumped by 29% to EUR1.4bn as against the first quarter of 2014.
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The unit’s management fees and other recurring revenues rose by 34%, mainly driven by higher average invested assets following positive asset flows, increased market levels as well as foreign exchange movements.
Noninterest expenses were up 21% to EUR1.1bn compared to a year earlier, mainly due to higher policyholder benefits and claims, impact of foreign exchange movements, higher revenue-driven costs and increased compensation costs. This was partly offset by lower cost-to-achieve related to OpEx and lower litigation costs.
Net interest income for the first quarter increased 29%, due to increased lending volume and favourable foreign exchange movements.
Invested assets were EUR1.2trn for the first quarter, primarily owing to foreign exchange movements of EUR63bn, market appreciation of EUR46bn and inflows of EUR17bn.
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By GlobalDataOverall, the group posted a pre-tax income of EUR1.5bn, down 12% from a year ago, while its net revenues were up 24% to EUR10.4bn compared to the first quarter of 2014.
Deutsche Bank co-CEOs Jürgen Fitschen and Anshu Jain said, "In the first quarter 2015, revenues were close to record levels, reflecting the strength of our franchise across all our core businesses. Profits were impacted by litigation expenses of EUR 1.5 billion, primarily reflecting the bank’s definitive settlement with US and UK authorities relating to interbank offered rates (IBOR) and bank levy charges of EUR 561 million."
