Deutsche Bank Discloses Asset-Management Revenue After Overhaulby
Asset management had highest return on equity of four units
Trading business is still the bank's top revenue generator
Deutsche Bank AG disclosed an earnings breakdown for its asset and wealth management businesses for the first time since co-Chief Executive Officer John Cryan announced an overhaul that split up the combined investment unit last year.
Revenue from asset management rose 16 percent to 3.3 billion euros ($3.8 billion) in 2015 from a year earlier, while income from the wealth unit increased 13 percent to 2.1 billion euros, the company said in a statement from Frankfurt on Wednesday, using new calculations. The bank published the combined unit’s revenue in January.
Deutsche Bank is seeking to tap a larger share of wealthy individuals and institutional investors as stricter capital rules, global market turmoil and cooling emerging markets erode revenue at the securities business. Germany’s largest bank broke up asset and wealth management to allay any regulatory concerns that affluent customers weren’t being given sufficient access to services offered by other investment firms, Cryan said in January.
Asset management, now overseen by Quintin Price, had a 43 percent return on average tangible shareholders’ equity last year, the highest of the four units Deutsche Bank wants to keep, according to the filings. The business is the smallest measured by revenue.
Wealth management, run by Fabrizio Campelli, is part of a division which also comprises consumer and commercial banking, ranking third in terms of revenue. The bank’s trading business, led by Garth Ritchie, is the largest, while Jeff Urwin’s corporate and investment bank ranks second, the filings show.