Profit at Deutsche Bank’s asset and wealth management unit
plunged 85% in the second quarter, down to €35m ($43m) from last
year’s €227m recorded for the same period.

Deutsche Bank said the fall was driven by a combination of
factors including negative market impact on revenues, net revenue
dropped 9% (€85m) to €891m, and higher non-operational expenses and
lower performance fees in asset management.

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Deutsche Bank also blamed the revenue drop on the realignment of
Sal. Oppenheim in 2011 which have a boost to last year’s second
quarter results.

 

Expenses jump 14%

Noninterest expenses were €843m, 14% (€106m)
more than in the second quarter 2011, due to business taxes and
legal expenses recorded in private wealth management (PWM).

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Deutsche Bank would not share any further
details of the legal expense charges when contacted for further
comment by PBI.The German bank also attributed the rise in AWM
noninterest expenses to costs incurred from the strategic review in
its asset management division (AM) announced in 2011, the bank
said.

 

AWN unit’s reshuffling

These are the first results published since
the AWM unit was created from the merger of Deutsche Bank existing
AM and PWM divisions, in June 2012.

The unification came in accordance with
Deutsche Bank’s ‘one-bank’ model, which relies on driving
collaboration between its different departments.

The new unit’s formation followed a Deutsche
Bank group executive committee (GEC) reshuffle earlier this
year.

The former head of private wealth management,
Pierre de Weck, and the head of asset management Kevin Parker stood
down on 31 May 2012.