Private & Business Clients Corporate Division (PBC)


 

Three months ended

Absolute change

Change
in %

in € m.

Mar 31, 2012

Mar 31, 2011

1

Postbank (including purchase price adjustments, noncontrolling interests and other transaction related components).

Net revenues:

 

 

 

 

Discretionary portfolio management/fund management

54

72

(19)

(26)

Advisory/brokerage

257

290

(33)

(11)

Credit products

545

547

(2)

(0)

Deposits and payment services

550

519

31

6

Other products

1,096

1,644

(548)

(33)

Total net revenues

2,501

3,072

(571)

(19)

Provision for credit losses

194

320

(126)

(39)

Noninterest expenses

1,865

1,888

(23)

(1)

Noncontrolling interests

29

77

(47)

(62)

Income before income taxes

413

788

(375)

(48)

 

 

 

 

 

Breakdown of PBC by business

 

 

 

 

Advisory Banking Germany:

 

 

 

 

Net revenues

1,031

1,038

(7)

(1)

Provision for credit losses

5

50

(45)

(90)

Noninterest expenses

835

757

78

10

Income before income taxes

191

231

(40)

(17)

 

 

 

 

 

Advisory Banking International:

 

 

 

 

Net revenues

497

707

(210)

(30)

Provision for credit losses

64

63

1

1

Noninterest expenses

306

345

(39)

(11)

Income before income taxes

127

298

(171)

(57)

 

 

 

 

 

Consumer Banking Germany:1

 

 

 

 

Net revenues

972

1,327

(354)

(27)

Provision for credit losses

125

206

(81)

(39)

Noninterest expenses

723

785

(62)

(8)

Noncontrolling interests

29

77

(47)

(62)

Income before income taxes

95

258

(164)

(63)

Net revenues in the first quarter 2012 were € 2.5 billion, down € 571 million, or 19 %, compared to the first quarter 2011. Most of this decline was attributable to lower revenues from other products, which decreased by € 548 million. This development reflected the non-recurrence of a one time positive impact of € 263 million related to our stake in Hua Xia Bank. In addition, Postbank contributed € 354 million to the decrease, with € 972 million revenues in the current quarter, compared to € 1.3 billion in the prior year quarter. The decrease was attributable to lower operating revenues driven by the impact of de-risking activities and also reflecting a low interest rate environment, as well as lower releases of loan loss allowances recorded prior to consolidation (which are shown as interest income). Furthermore, revenues in Postbank were negatively affected by € 34 million impairments on Greek government bonds. Advisory/brokerage revenues were down by € 33 million, or 11 %, in both Advisory Banking Germany and International. Revenues from discretionary portfolio management/fund management decreased by € 19 million, or 26 %, mainly in Advisory Banking Germany. Both product categories were impacted by the ongoing reluctance of retail clients to invest. Revenues from deposits and payment services were € 550 million, up € 31 million, or 6 %, compared to the first quarter 2011, mainly driven by an increase in deposit volumes in both Advisory Banking units. Credit products revenues were essentially unchanged, compared to the first quarter 2011. Increased revenues resulting from higher loan volumes offset the impact of lower margins in all major regions of Advisory Banking.

Provision for credit losses was € 194 million in the first quarter of 2012 versus € 320 million in the first quarter 2011, of which € 125 million and € 206 million, respectively, related to Postbank. The decrease of € 81 million in Postbank provision for credit losses was attributable to releases of loan loss allowances recorded after consolidation. In the current quarter, releases of loan loss allowances recorded prior to consolidation were € 36 million (versus € 117 million in the first quarter 2011) and are reported as net interest income. Excluding Postbank, provisions for credit losses decreased by € 44 million, compared to the same quarter last year. The decrease was primarily attributable to an improved credit performance in consumer finance. In addition, the decline was attributable to a positive impact from the sale of non-performing loan portfolios of € 51 million, whereas the first quarter 2011 included a positive effect from portfolio sales of € 33 million.

Noninterest expenses were € 1.9 billion in the first quarter 2012, slightly below the first quarter 2011. The decrease included € 54 million related to Postbank, mainly due to lower operating expenses and the non-recurrence of expenses related to measures recorded in the prior year’s quarter. Excluding Postbank (and costs related to Postbank integration reflected in Advisory Banking Germany), noninterest expenses were up € 31 million, mainly resulting from a negative impact of € 40 million related to a buyback offer for a specific closed-end fund.

Income before income taxes was € 413 million in the first quarter, a decrease of € 375 million, or 48 %, compared to the first quarter 2011. The decrease was mainly driven by the non-recurrence of the aforementioned one time positive impact in Advisory Banking International related to our share in Hua Xia Bank. Advisory Banking International recorded an income before income taxes of € 127 million in the current quarter compared to € 298 million in the prior year quarter. Income before income taxes in Advisory Banking Germany was € 191 million in the current quarter and € 231 million in the first quarter 2011. In Consumer Banking Germany income before income taxes was € 95 million and € 258 million, respectively.

Invested assets were € 308 billion as of March 31, 2012, up € 5 billion compared to December 31, 2011. The increase was driven by € 6 billion related to market appreciation, partly offset by € 1 billion of net outflows.

PBC’s total number of clients was 28.5 million, of which 14.0 million related to Postbank. PBC’s number of clients at March 31, 2012 was essentially unchanged from December 31, 2011.

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Deutsche Bank Interim Report as of September 30, 2011

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