The FINANCIAL — Deutsche Bank reported results for 2Q2014. Group net revenues of EUR 7.9 billion declined 4% from the prior year while noninterest expenses fell 4% to EUR 6.7 billion. Income before income taxes was EUR 917 million in 2Q2014, 16% higher than 2Q2013 largely reflecting a 4% decline in noninterest expenses, particularly lower performance related expense, and lower provisions for credit losses, according to Deutsche Bank AG.
“Deutsche Bank delivered a quarter of strong underlying performance with pre-tax profit up 16% year-on-year. In the first six months of 2014, Core Bank adjusted profits were EUR 5 billion, despite a tough operating environment and continued investments in our businesses as we implement Strategy 2015+,” Jürgen Fitschen and Anshu Jain, Co-Chief Executive Officers, said.
“All our core businesses contributed to this result. In particular, Corporate Banking & Securities delivered robust revenues, growing profits, and for the second consecutive quarter, strong relative performance, regaining its top-3 position in global fixed income and capturing our best ever market share in corporate finance. In addition, Deutsche Asset & Wealth Management more than doubled pre-tax profits versus the prior year quarter, improved revenue quality, and attracted its best net money inflows since 2010,” they added.
“These results reflect progress with Strategy 2015+, which we reinforced with two capital raises in the quarter. Nonetheless, our environment is complex. The world’s economies are growing at different speeds, and this may cause differences in the pace at which interest rates normalize, creating opportunities; however, emerging geopolitical events in Ukraine and the Middle East may impact financial markets and our clients, and we continue to adapt to a fast changing regulatory framework. We remain committed to working systematically through our strategic agenda and, with enhanced capital strength, we face these challenges with greater confidence,” they concluded.
Group net revenues in 2Q2014 decreased by 4%, to EUR 7.9 billion, compared to EUR 8.2 billion in the prior year quarter, according to Deutsche Bank AG.
CB&S revenues in 2Q2014 were EUR 3.5 billion, down 1% from 2Q2013. This was mainly attributable to a 11% decline in Equity Sales & Trading revenues, being largely offset by a 10% growth in Origination & Advisory revenues.
PBC revenues in 2Q2014 were 3% lower than 2Q2013. The decrease was primarily driven by non-recurring items related to Postbank that occurred in 2Q2013. Excluding the effect of those items in the prior year period revenues were relatively unchanged.
GTB revenues of EUR 1.0 billion were unchanged compared to 2Q2013 as revenue growth in Trade Finance and Trust & Securities Services offset the absence of a gain from the sale of Deutsche Card Services in 2Q2013.
DeAWM revenues increased by 9% to EUR 1.1 billion from 2Q2013, reflecting mark-to-market movements related to Abbey Life policyholder positions, which are offset in noninterest expenses. Excluding the impact of Abbey Life, revenues were unchanged from the prior year period, according to Deutsche Bank AG.
NCOU revenues in 2Q2014 were negative EUR 44 million, a decrease by EUR 322 million from 2Q2013. This decline was primarily due to the realisation of EUR 314 million in accumulated losses triggered by the restructuring of Maher Terminals’ debt financing.
Compared to 1Q2014, net revenues decreased 6%, or EUR 532 million. This was mainly attributable to a 25% decline in Debt Sales & Trading revenues, partly offset by a 30% growth in Advisory & Debt Origination revenues. Additionally, revenues were lower in PBC, driven by a subsequent 1Q2014 gain of sale closed in a prior period, and in NCOU, reflecting the aforementioned loss from debt refinancing restructuring of Maher Terminals.
Group provision for credit losses declined 47% in 2Q2014 to EUR 250 million compared to 2Q2013. This reduction reflects lower provisioning in NCOU, good credit quality in the German retail portfolio and the non-recurrence of large single items in 2Q2013, according to Deutsche Bank AG.
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