Deutsche Bank said the fall was driven by a combination of factors including negative market impact on revenues, net revenue dropped 9% (85m) to 891m, and higher non-operational expenses and lower performance fees in asset management.
Deutsche Bank also blamed the revenue drop on the realignment of Sal. Oppenheim in 2011 which have a boost to last year’s second quarter results.
Noninterest expenses were 843m, 14% (106m) more than in the second quarter 2011, due to business taxes and legal expenses recorded in private wealth management (PWM).
Deutsche Bank would not share any further details of the legal expense charges when contacted for further comment by PBI.The German bank also attributed the rise in AWM noninterest expenses to costs incurred from the strategic review in its asset management division (AM) announced in 2011, the bank said.
These are the first results published since the AWM unit was created from the merger of Deutsche Bank existing AM and PWM divisions, in June 2012.
The unification came in accordance with Deutsche Bank’s ‘one-bank’ model, which relies on driving collaboration between its different departments.
The new unit’s formation followed a Deutsche Bank group executive committee (GEC) reshuffle earlier this year.
The former head of private wealth management, Pierre de Weck, and the head of asset management Kevin Parker stood down on 31 May 2012.
Source: Private Banker International