TLDR:

Deutsche Bank has reported private banking net revenues of €9.6 billion for 2023, a 5% increase from the previous year. Revenues in the German private bank entity rose by 14%, while revenues in the international private bank fell 8%. Private bank assets under management increased by €40 billion to reach €559 billion. Deutsche Bank’s overall pre-tax profit for 2023 was €5.7 billion, a 2% increase from the previous year, with revenues growing 6% to €28.9 billion. Christian Sewing, Deutsche Bank’s chief executive, expressed confidence in achieving the bank’s 2025 targets.

Key Points:

• Deutsche Bank’s private banking net revenues for 2023 were €9.6 billion, rising 5% from the previous year.
• Revenues in the German private bank entity increased by 14%.
• Revenues in the international private bank fell 8%, but were up 3% excluding specific items.
• Private bank assets under management rose by €40 billion to reach €559 billion.
• Deutsche Bank’s overall pre-tax profit for 2023 was €5.7 billion, a 2% increase from the previous year.
• Deutsche Bank expressed confidence in achieving its 2025 targets.

Deutsche Bank has reported private banking net revenues of €9.6 billion ($10.4 billion) for 2023, rising 5 per cent on a year earlier, and up 10 per cent on an adjusted basis. Higher revenues from deposit products, caused by higher net interest margins, more than offset lower commissions and fee income resulting from contractual and regulatory changes and the non-recurrence of revenues from Deutsche Bank Financial Advisors after its divestment, the Frankfurt-headquartered lender said in a statement. Revenues in the German private bank entity rose by 14 per cent to €6.1 billion, while revenues in the international private bank fell 8 per cent, but were up 3 per cent excluding specific items. Private bank assets under management rose €40 billion last year reaching €559 billion, largely driven by net inflows of €29 billion.

In the fourth quarter, private bank net revenues were €2.4 billion, down 4 per cent on the same period a year earlier or rising 9 per cent excluding specific items. At the group level, Deutsche bank said its pre-tax profit for 2023 was €5.7 billion, rising 2 per cent on a year earlier. Revenues grew 6 per cent to €28.9 billion; non-interest costs stood at €21.7 billion, rising 6 per cent. Capital generation enabled Deutsche, it said, to make €1.6 billion of distributions in the first half of the year. At the end of December 2023, Deutsche had a Common Equity Tier 1 capital ratio – a bank’s capital “shock absorber” – of 13.7 per cent.

“We have achieved our highest profit before tax in 16 years, delivered growth well ahead of target and maintained our focus on cost discipline while investing in key areas. Our strong capital generation enables us to accelerate distributions to shareholders. This gives us firm confidence that we will deliver on our 2025 targets,” Christian Sewing, Deutsche’s chief executive, said.