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July 29, 2021

Deutsche Bank Q2 net income surges to €692m

By Verdict Staff

Deutsche Bank has posted a net income of €692m for the second quarter of 2021 compared to net loss of €77m a year ago backed by significant improvement across all businesses.

For the quarter ended 30 June 2021, the German bank’s total net revenue declined by 1% to €6.24bn from €6.28bn last year.

Provision for credit losses during the quarter fell to €117m versus €225m in the second quarter of 2020.

Investment Bank

The net revenues at Deutsche Bank’ Investment Bank unit fell 11% to €2.4bn. Revenues in Fixed Income & Currencies (FIC) also fell by 11% to €1.8bn.

The bank said the development largely reflected the anticipated normalisation of financial market activity compared to the second quarter of 2020.

The losses were offset by strong year on year growth in credit, both trading and financing, it added.

Origination & Advisory revenues rose by 2% to €624m, while Advisory revenues were more than double the prior year quarter, driven by increased M&A activities.

Private Bank

The private banking division of the German lender registered net revenues of €2bn, an increase of 3% compared to the prior year quarter.

The unit suffered a negative impact of €222m due to an unfavourable ruling by German Federal Court of Justice in April this year.

The unit recorded new business volumes of € 14bn in the quarter. This included €4bn in net new client loans and €7bn in net inflows of investment products.

International Private Bank’s net revenues increased by 9% to €820m, driven by continued business growth in investment products and loans.

It was also supported by the non-recurrence of a one-off re-hedging charge in Italy, recovering markets and hires of relationship managers in previous periods

The private banking business in Germany narrowed its pre-tax loss to €11m from €257m year-ago.

Asset Management

Deutsche Bank’s asset management unit recorded a total net revenue of €626m, a 14% rise from €549m in the second quarter of 2020.

The unit’s profit before tax rose to €180m from €114m a year ago.

Its assets under management grew by €39bn during the quarter to a record € 859bn, reflecting strong net inflows and positive market developments.

Net inflows in the second quarter stood at record €20bn, driven by substantial inflows in Active, Passive and Alternative segments across Americas, Europe, the Middle East and Africa (EMEA) and Asia-Pacific regions.

Deutsche Bank CEO Christian Sewing said: “All our businesses have contributed to the year-on-year profit growth, gained further relevance for our clients and continued to capture market share. Once again, our cost and risk management provided us with firm foundations. Our priority now is to continue with our disciplined execution of transformation, quarter by quarter.”

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