Asset and Wealth Management Corporate Division (AWM)


in € m.

Three months ended

Change
in %

Six months ended

Change
in %

Jun 30, 2010

Jun 30, 2009

Jun 30, 2010

Jun 30, 2009

N/M – Not meaningful

Net revenues

969

617

57

1,869

1,131

65

Provision for credit losses

4

4

(2)

8

9

(7)

Noninterest expenses

921

700

32

1,803

1,386

30

Noncontrolling interests

(0)

(1)

(91)

1

(5)

N/M

Income (loss) before income taxes

45

(85)

N/M

57

(258)

N/M

2010 to 2009 Three Months Comparison

AWM reported net revenues of € 969 million in the second quarter 2010, an increase of € 352 million, or 57 %, compared to the same period in 2009. Revenues in the second quarter 2010 included € 148 million related to Sal. Oppenheim Group (including BHF Bank), which was consolidated for the first time in the first quarter 2010. Discretionary portfolio management/fund management revenues in Asset Management (AM) increased by € 39 million, or 10 %, and in Private Wealth Management (PWM) by € 62 million, or 92 %. Revenues were positively impacted by favorable market conditions, the impact of higher asset valuations on asset based fees and the weakening of the euro. Advisory/Brokerage revenues of € 226 million improved by € 57 million, or 34 %, mainly reflecting increased client activity. Revenues from credit products were € 99 million, up € 39 million, or 66 %, primarily due to higher loan volumes, improved margins and a positive impact from the weakening of the euro. Deposits and payment services revenues of € 30 million decreased by € 23 million, or 44 %, driven by significant lower deposit margins. Revenues from other products were € 62 million compared to negative € 116 million in the same period last year. Revenues in the second quarter 2010 benefited from the consolidation of Sal. Oppenheim Group, whereas revenues in the second quarter 2009 included impairment charges of € 110 million related to RREEF investments in AM.

Noninterest expenses were € 921 million in the second quarter 2010, up by € 221 million, or 32 %, compared to the second quarter 2009. The increase included € 235 million related to Sal. Oppenheim Group, partly offset by lower expenses resulting from headcount reductions in AM.

AWM recorded income before income taxes of € 45 million compared to a loss before income taxes of € 85 million in the second quarter last year.

Invested assets in AWM increased by € 17 billion to € 870 billion in the second quarter of 2010. The weakening of the euro accounted for € 38 billion of the increase, which was partly offset by € 9 billion from market depreciation. Outflows were € 12 billion in AM, primarily in money market products in the U.S. in line with industry development, and € 3 billion in PWM.

2010 to 2009 Six Months Comparison

AWM reported net revenues of € 1.9 billion for the first half of 2010, a significant increase of € 738 million, or 65 %, compared to the first half of 2009. Revenues in the first half of 2010 included € 291 million related to Sal. Oppenheim Group, which was consolidated for the first time in the first quarter 2010. Discretionary portfolio management/fund management revenues were up € 90 million, or 12 %, in AM and € 113 million, or 87 %, in PWM. Both increases reflected improved market conditions and higher asset based fees. Advisory/ Brokerage revenues of € 431 million increased by € 92 million, or 27 %, compared to the first six months of 2009. This development was primarily driven by higher transaction volumes. Credit products revenues were up € 61 million, or 53 %, largely due to higher loan volumes and margins, supported by a positive impact from the strengthening of the U.S. dollar. Deposits and payment services revenues of € 63 million decreased by € 26 million, or 29 %, mainly due to tighter deposit margins resulting from lower levels of interest rates. Revenues from other products were € 142 million in the first six months of 2010 compared to negative € 267 million in the same period of the previous year. Revenues in the first half of 2010 benefited from the consolidation of Sal. Oppenheim Group, whereas revenues in the first half of 2009 included impairment charges of € 230 million related to RREEF investments in AM.

Noninterest expenses in the first half of 2010 were € 1.8 billion, an increase of € 417 million, or 30 %. This development included € 420 million related to the consolidation of Sal. Oppenheim Group in PWM. In AM, compensation and benefits were down by € 13 million, or 4 %, mainly due to lower severance payments compared to the prior year.

In the first six months of 2010, AWM recorded income before income taxes of € 57 million, including a loss before income taxes of € 135 million related to the consolidation of Sal. Oppenheim Group, compared to a loss before income taxes in AWM of € 258 million in the first half of 2009.

Invested assets in AWM increased € 185 billion to € 870 billion in the first half of 2010. In PWM, invested assets increased by € 130 billion to € 319 billion. This development included € 112 billion related to the acquisition of Sal. Oppenheim Group and net new assets of € 2 billion. In AM, invested assets increased by € 55 billion to € 551 billion, including € 41 billion from the weakening of the euro and € 14 billion related the acquisition of Sal. Oppenheim Group.

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