FrankfurtDeutsche Bank has been in the red for investment banking in the first quarter. As reported by the largest German bank on Friday in Frankfurt, yields on bonds and equities fell by almost one fifth.
The bottom line was that the corporate and investment bank – the largest of the three pillars of the financial group – had to accept a loss of 88 million euros.
In the starting quarter of 2018, she still had a profit of 203 million euros written. Other major banks had also recently suffered some severe setbacks in these lines of business.
Deutsche Bank had already published the key figures of its quarterly balance sheet the day before, after talks with Commerzbank about a potential merger had been broken off. All in all, the institute posted a profit of € 201 million, clearly exceeding the expectations of the financial market.
In the past year, the result after tax was 120 million euros. However, revenues fell by nine percent to 6.35 billion euros.
Private and corporate bank revenues were € 2.5 billion in the first quarter, down 5 percent from a year ago, but assets under management grew 6 percent to € 502 billion.
Business in the domestic market of Germany fell by seven percent. Profit before taxes fell by 11 percent to 287 million euros.
DWS tightened austerity measures
The asset management subsidiary of Deutsche Bank, DWS, also looked at the figures on Friday. The company is tightening its austerity course and screwing up on its goals. Although the Deutsche Bank subsidiary was able to raise fresh money for customers for the first time since its IPO last spring, adjusted earnings fell to EUR 534 million in the first quarter – four percent less than in the same period last year, DWS announced on Friday. Thanks to savings, DWS was nevertheless able to increase its adjusted earnings before taxes by nine percent to 153 million euros.
The price war among asset managers remains tough: The management fee margin of DWS fell in the first quarter to only 30 basis points – a value that the asset manager had always spent as a minimum target so far.
DWS now stated that its medium-term goals are "more in line with the market environment". The cost target has the highest priority in the future and the savings would be accelerated. In the current year, the expense / income ratio is expected to fall to around 70 percent from 71.4 percent in the first quarter. In the medium term, the asset manager will continue to aim for a ratio of 65 percent.
The assets under management want to increase the DWS 2019 stronger than the market, which will grow according to assumptions of the company by two to three percent. So far, the DWS had made here a plus of three to five percent.
In the first quarter, the Deutsche Bank subsidiary received a net cash inflow of € 2.5 billion – equivalent to 1.5 percent of assets under management. Assets under management rose to 704 billion euros at the end of March.
. (tagsToTranslate) Deutsche Bank (t) Losses (t) Investmentbanking (t) Profit (t) Quarterly (t) Investment (t) Deutsche Asset Management (t) UBS (t) Commerzbank (t) Banks & Credit Institutions