Pre-tax income at the investment solutions arm, which includes wealth management, was €483 million ($634 million) in the first three months of this year, a 9.3 per cent year-on-year decline. Total revenues were €1.521 billion, unchanged from the same quarter in 2011, it said. Gross operating income was €478 million, a 0.2 per cent fall.
“This quarter, the net asset inflows of Investment Solutions totalled €12.6 billion euros. All the business units made a positive contribution: asset management (+€7.8 billion) thanks to strong asset inflows into money market funds from institutional investors; Private Banking (+€2.7 billion), especially in the domestic markets and in Asia; Insurance (+€1.1 billion) thanks to good asset inflows in France, Luxembourg and Asia; Personal Investors (+€0.4 billion) and Real Estate Services (+€0.4 billion),” it said.
Assets under management at the private banking arm rose 2.3 per cent in the first quarter of 2012 from the previous three months, driven by a 3.4 per cent rise in assets under management by LCL Banque Privée, as inflows of interest-bearing deposits offset outflows of securities. Internationally, aided by a favourable currency impact, assets under management moved up 2.2 per cent in the first quarter of 2012 even though business was adversely affected by instability in the eurozone and customer mistrust of European banks.
Net revenues at the private clients and asset management arm at Germany’s biggest bank fell to €3.4 billion (around $4.49 billion) in the first three months of this year compared with €4.1 billion a year before. The figures were “positively impacted” by €263 million related to Deutsche’s stake in Hua Xia Bank for which equity method accounting was applied for the first time. The remaining decrease was mainly attributable to lower operating revenues in Postbank 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.
The private customers segment at Germany’s Commerzbank posted an operating profit of €112 million ($145.2 million) for the first quarter of the year, in line with last year’s level of €116 million.