The Private, Wealth & Commercial Clients (PW&CC) arm of Deutsche Bank has reported a pre-tax income of EUR71m for the first quarter of 2016, down 82.4% from EUR403m in the year-ago quarter.
For the quarter ended 31 March 2016, the division’s net revenues dropped 17% to EUR1.73bn from EUR2.09bn in the first quarter of 2015. Revenues of Private & Commercial Clients segment fell 5% to EUR1.4bn, while revenues of wealth management segment decreased 8% to EUR498m compared to the year ago quarter.
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Noninterest expenses increased 1.2% to EUR1.63bn from EUR1.61bn in the prior year, while provision for credit losses plunged 55% year-on-year to EUR36m.
Deutsche Asset Management (Deutsche AM) posted a pre-tax income of EUR168m, down 2.9% from EUR173m during the same quarter in 2015.
Net revenues at the unit dropped 12.4% to EUR736m from EUR840m in the prior year, while noninterest expenses dipped 15% year-on-year to EUR567m.
Overall, the German banking group posted a net income of EUR236m for the first quarter, a decrease of 57.8% from EUR559m a year ago.
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By GlobalDataThe banking group’s pre-tax income dropped 60.8% to EUR579m from EUR1.48bn in the prior year. Net revenues were down by 22.2%year-on-year to EUR8.07bn from EUR10.37bn.
Deutsche Bank co-CEO John Cryan said: "Financial markets were challenging during the first quarter, largely reflecting concerns about the outlook for the global economy. This uncertainty led to a decline in client activity in the capital markets, and our revenues fell from the prior year, most notably in our trading and corporate finance businesses.
"Despite this, we made progress on a number of fronts including the modernisation of our IT platforms; the operational separation of Deutsche Postbank, which is almost complete; the continued disposal of non-core assets; and the ongoing closure or downsizing of our operations in selected countries. In addition, we markedly improved the process through which we adopt new clients."
