Investment banking contributed to Deutsche Bank’s revenue growth in the third quarter, led by growth in fixed income and currencies (FIC) and origination and advisory (O&A).
The bank’s investment banking business posted an 11% year-over-year increase in net revenue for the quarter, while Deutsche Bank’s overall net revenue rose 5%, according to a Wednesday (Oct. 23) earnings release.
In prepared remarks for Wednesday’s earnings call, Deutsche Bank CEO Christian Sewing said the investment banking gains were driven by “the continued efforts of our business and coverage teams in supporting our clients. He said it was thanks to his ability to concentrate and concentrate.
Corporate Banking’s net revenue decreased 3% year-on-year, due to normalization of deposit margins and lower net interest income in Business Banking compared to the strong level of the prior-year period. The announcement states that there is.
According to the release, net revenue for the private bank business was essentially flat, with net interest income decreasing as interest rates stabilized and investment products increasing as the bank sought to grow non-interest income.
In its asset management business, net revenue increased 11% year over year, management fees increased 6%, and assets under management reached a record 963 billion euros (approximately $1.4 trillion) at the end of the third quarter.
Overall, 5% year-over-year growth brought Deutsche Bank’s third-quarter net revenue to 7.5 billion euros (approximately $8.1 billion).
“Fees and fees income increased by 5% year-on-year to €2.5 billion, reflecting the strong performance of the fees and commission-based business, with net interest income in the main sectors of the bank’s book increasing as a result of further normalization of interest rates. “Interest rates were broadly stable in the environment and in line with expectations,” the bank said in an earnings call.
The Private Bank division has made progress in its efforts to transform its personal banking division, closing approximately 50 branches since the beginning of the year and “many more to come,” Sewing said in prepared remarks. I mentioned it in.
Deutsche Bank in September closed a “mid-double digit” number of small branches in Germany, while increasing its ability to provide advice by video and telephone, investing further in apps and other digital transformations, and expanding its private banking centres. announced that it would expand its facilities. , community events to the latest ATMs and their branches.
