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Deutsche Bank net revenues down 11%

Staff writer |
Deutsche Bank reported results for Q1 2014. Group net revenues of 8.4 billion declined 11% from the prior year while noninterest expenses fell 2% to EUR 6.5 billion. Income before income taxes of EUR 1.7 billion declined 30%.

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Diluted earnings per share for the quarter were EUR 1.03, compared to EUR 1.71 in Q1 2013. Post-tax return on average active equity was 7.9%, versus 12.3% in Q1 2013.

Net revenues in Q1 2014 decreased by 11 %, or EUR 999 million, to EUR 8.4 billion, compared to EUR 9.4 billion in Q1 2013. In CB&S, revenues were EUR 4.1 billion, down EUR 471 million, or 10 %, versus Q1 2013.

The decrease was mainly attributable to reduced revenues in Sales & Trading (debt and other products), which were down by EUR 285 million, or 10 %, compared to Q1 2013, resulting from lower client activity reflecting low volatility and ongoing uncertainty around emerging markets. In addition, revenues in CB&S decreased due to losses from Debt Valuation Adjustment (DVA) in Q1 2014, whereas a gain for DVA was recorded in Q1 2013.

PBC revenues were EUR 2.5 billion in Q1 2014, up EUR 91 million, or 4 %, compared to Q1 2013. The increase was primarily driven by subsequent gains related to a business sale closed in a prior period, but also due to higher revenues in investment and insurance products. Revenues in GTB were EUR 1.0 billion, marginally down by EUR 6 million, or 1 %, from Q1 2013 impacted by a highly competitive environment and continued low interest rates.

DeAWM revenues decreased by EUR 177 million, or 14 %, to EUR 1.1 billion, versus Q1 2013 mainly driven by mark-to-market movements on policyholder positions in Abbey Life, largely offset in noninterest expenses.

Revenues in the NCOU were EUR 74 million, a decrease by EUR 367 million, or 83 %, in Q1 2014, reflecting a reduction of assets following our de-risking activities and losses incurred by the Special Commodities Group (SCG), primarily driven by losses on our exposure to traded products in the U.S. power sector.

Consolidation & Adjustments (C&A) net revenues declined from negative EUR 259 million in Q1 2013 to negative EUR 327 million in Q1 2014. This development was predominantly attributable to valuation and timing differences from different accounting methods used for management reporting and IFRS as well as negative impacts from funding valuation adjustments on internal uncollateralized derivatives.

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