The Private & Commercial Bank (PCB) unit of Deutsche Bank has reported a pre-tax income of €262m for the second quarter of 2018, a decline of 23% compared to €338m reported in the same period last year.
The bank said that the decrease in income was partly driven by around €65m of investments related to the merger of Postbank and its private and commercial clients business in Germany, which led to the creation of a new legal entity called DB Privat- und Firmenkundenbank in May this year.
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The unit’s quarterly net revenues dipped 1% year-on-year to €2.54bn. Total noninterest expenses at the division remained almost stable at €2.19bn.
Deutsche Asset Management posted a pre-tax income of €93m for the second quarter of 2018, a decrease of 61% from €238m in the corresponding quarter of 2017. Net revenues at the unit slid 17% to €561m from €676m last year.
Deutsche Bank Q2 Results
Overall, the banking group registered a net income of €401m in the second quarter of 2018, a fall of 14% from €466m in the corresponding quarter of 2017.
The group’s pre-tax income for the quarter was €711m, down 13% from €822m in the previous year.
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By GlobalDataCompared to last year, the group’s noninterest expenses rose 1% to €5.78bn while net interest income increased 11% to 3.43bn. Provision for credit losses at the group was €95m, versus €79m a year earlier.
Deutsche Bank CEO Christian Sewing said: “In the second quarter we accelerated the reshaping of our bank significantly and proved the resilience of our global business. We’re making important changes to our core businesses as promised, we’re headed in the right direction on costs, and our balance sheet quality is strong. This gives us the flexibility to invest in areas where we have particular strengths.”
In a message to employees, Sewing said: “In our wealth management business, revenues were also essentially stable if adjusted for specific effects. We aim to grow here as well. We have been hiring client advisors worldwide. We integrated the Sal. Oppenheim business, retaining a large majority of client relationships. That was also a big success.”
