The FINANCIAL — Deutsche Bank reported results for 3Q2014. Group net revenues of EUR 7.9 billion, up 2% from the prior year, with noninterest expenses 2% higher at EUR 7.3 billion. Income before income taxes was EUR 266 million in 3Q2014, compared to EUR 18 million in 3Q2013, as an increase in revenues and lower provision for credit losses were partially offset by higher noninterest expenses, according to Deutsche Bank AG.
“Net income in this quarter was materially impacted by provisions as we continued to work toward resolution of litigation matters related to legacy issues. We also incurred costs of adapting to new regulation, elevating our systems and control frameworks to best in class, and investing in growth in our core businesses. These costs were partly offset by further savings in our Operational Excellence (OpEx) program which has already reached its original year end 2014 target,” Jürgen Fitschen and Anshu Jain, Co-Chief Executives, said.
“Core Bank underlying performance was solid, with well-balanced earnings contributions and underlying revenue growth across all four core businesses. In Corporate Banking & Securities, robust revenue growth in Debt Sales & Trading reflected a strong performance in our market-leading Foreign Exchange business, a diversified franchise and an uptick in volatility toward quarter end. Corporate Finance sustained its global top-5 ranking and leadership in Europe. Private & Business Clients grew revenues despite record-low interest rates thanks to growth in Credit products and Investment & insurance products. Global Transaction Banking also grew revenues on the back of strong volumes. Deutsche Asset & Wealth Management produced its third consecutive quarter of net money inflows, reaching EUR 1 trillion in assets under management,” they added.
“Looking ahead, near-term headwinds persist. Europe’s macro-economic outlook faces challenges, and geopolitical risks continue to create uncertainties. In the coming quarters, we will continue to work systematically through our strategic agenda: resolving outstanding litigation matters, completing the task of adapting our platform to new regulation, finalising our investments in OpEx, and reaping the benefits of investments in core business growth. We remain resolutely focused on executing this agenda. Robust underlying performance in our core businesses indicates the progress we are making on that journey,” they concluded.
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