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The Private Clients and Asset Management Group Division, or PCAM, comprises Deutsche Bank’s investment management business for both private and institutional clients, together with our traditional banking activities for private individuals and small and medium-sized businesses.
2007 was a successful year for PCAM. Profitability was ahead of 2006 despite a difficult environment. Invested assets were € 952 billion at the end of the year, € 44 billion higher than at the end of the previous year, despite the negative impact of a weak U.S. Dollar. Net new money inflows were a record € 59 billion. We also continued to invest in our platform, both in our core European and U.S. markets, and in fast-growing markets such as China and India.
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Excerpt from segment reporting (Private Clients and Asset Management1) | |||||
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In 2007, PCAM generated a pre-tax profit of € 2.1 billion. The improvement of € 0.1 billion was mainly attributable to the Private & Business Clients Corporate Division. Revenues increased due to the acquisitions of norisbank and Berliner Bank and to sales of innovative investment and pension related products, partly offset by higher expenses due to the acquisitions and investments in business growth. In Asset and Wealth Management, pre-tax profit increased slightly. Significant revenue increases in Private Wealth Management, due to organic and acquisition related growth, were offset by lower performance related revenues and an impairment charge on an intangible asset in Asset Management. | |||||
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in € m. |
2007 |
2006 | |||
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Net revenues |
10,129 |
9,315 | |||
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Total provision for credit losses |
501 |
391 | |||
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Noninterest expenses |
7,561 |
7,000 | |||
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Income before income taxes |
2,059 |
1,935 | |||
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Return on equity (pre-tax) in % |
24 |
27 | |||
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85,586 |
76,234 | |||
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Assets |
156,391 |
130,642 | |||
PCAM comprises two Corporate Divisions: Asset and Wealth Management and Private and Business Clients.
ASSET AND WEALTH MANAGEMENT
The Asset and Wealth Management Corporate Division comprises two businesses: Asset Management and Private Wealth Management. Asset Management serves retail clients with a full range of mutual fund products and institutional clients with a fully integrated offering, from traditional asset management products through to high-value products including absolute return strategies and real estate asset management. Private Wealth Management caters to wealthy individuals and families throughout the world.
