Deutsche Bank Reports Q2 $1.42 Billion Profit, $40 Billion Net Asset Inflow from Private Banking & Asset Management
29th July 2021 | Singapore
Deutsche Bank, Germany’s largest bank and one of the largest bank in Europe and the world, has reported net revenue of $7.32 billion (€6.2 billion) and profit-before-tax of $1.42 billion (€1.2 billion) in its 2021 Q2 earnings, delivering its best 1st half result since 2015. Deutsche’s Private Bank delivered strong performance with $16.5 billion (€14 billion) net inflows and Asset Management (DWS) with $23.6 billion (€20 billion) net inflows, with Asset Management total assets reaching a record high of $1.01 trillion (€859 billion). For 2021 1st half, Deutsche Bank’s net revenue is up 7% (at €13.5 billion) and profit-before-tax at $3.3 billion (€2.8 billion). For 2021 Q2, Deutsche’s Corporate Bank net revenue was down 8% (€1.2 billion) and Investment Bank was down 11% (at €2.4 billion), while Private Bank net revenue was up 3% (at €2.0 billion) and Asset Management (DWS) net revenue was up 14% (at €626 million).
“ $40 Billion Net Asset Inflow from Private Banking & Asset Management “
International Private Bank (IPB), $16.5 billion inflow
In 2021 Q2, Deutsche’s Private Bank delivered strong performance with $16.5 billion (€14 billion) net inflows, generating revenue of €820 million, an increase of 9% from 2020 Q2 due to business growth in recovering markets. Private Banking and Wealth Management (WM) revenues were up 8% to €607 million, while Personal Banking revenues were up 14% to €213 million. (Adjusted for FX and specific items, Private Banking and WM revenues were up 10%)
- Deutsche Bank Hires Terence Leong as Group Head South East Asia Wealth Management, 3 HSBC Private Bankers
- Deutsche Private Bank Launches 4 Funds with Regular Income Using ETFs, AUM at $4.1 Billion
- Deutsche Bank Launches ESG Centre of Excellence in Singapore
- Deutsche Bank Survey: 75% of Private Bank Clients View Investments Should Have Positive Impact to the World
Deutsche Bank Head of IPB and CEO of EMEA, Claudio de Sanctis:
“The IPB delivered a very strong performance for the bank during the quarter. In addition to 9 percent growth in net revenue, Assets under Management increased by 13 percent year-over-year, reflecting net inflows and market appreciation. We recorded net new asset inflows of 6 billion euros in the quarter and net new client loans of 2 billion euros.
Growth was especially strong in Germany and Asia. Sustained business growth in loans and investment products drove our increased revenues, and our investment in 60 strategic Relationship and Investment Manager hires across geographies supported growth further in the first half.“
Deutsche Private Bank Launches 4 Funds with Regular Income Using ETFs, AUM at $4.1 Billion
In June 2021, Deutsche Bank International Private Bank (IPB) had launched 4 Strategic Income Allocation (SIA) funds, targeting to generate a regular stream of income distribution and downside risk management. The 4 new funds aim to provide Deutsche Bank Private Banking clients with diversified income sources by investing in cost-efficient ETFs (fixed income, global equity, listed real estate, infrastructure), using options for yield enhancement and to manage downside risks via DWS (Deutsche Bank Asset Management).
The 4 Strategic Income Allocation (SIA) funds are available to Deutsche Bank Private Banking clients in selected countries in Asia and Europe, starting from June 2021. In 2020, Deutsche Bank International Private Bank had launched its flagship Strategic Asset Allocation (SAA) investments, with Assets under Management at more than $4.18 billion (€3.5 billion) in June 2021.
ESG Strategy
Deutsche Bank International Private Bank (IPB) also made significant progress during 2021 Q2 on its ESG strategy, growing ESG-compliant finance solutions in the product portfolio, which reached €9 billion in ESG assets as per June 2021. The IPB also became Deutsche Bank’s first business to offer ESG training to all staff and the first full-member bank to join the Ocean Risk and Resilience Action Alliance (ORRAA). The CIO Office continued to produce leading ESG insights, building our ESG credibility with the publication of a special report on biodiversity loss and a client survey showing that three quarters want their investments to make a positive impact.
Deutsche Bank CEO Sets Sustainability Target to 2023
On 20th May 2021, Deutsche Bank CEO Christian Sewing made the announcement to bring forward its sustainability finance target by 2 years from 2025 to 2023, including to facilitate over EUR 200 billion ($243 billion) in sustainable finance and investments by the end of 2023. The International Private Bank aims to make ESG investments the standard in its portfolio management from 2022. As ESG will be the default, clients will no longer have to opt into ESG products. The International Private Bank aspires to convert investments of at least 1 million clients to ESG over the next few years.
DWS, Asset Management
In 2021 Q2, Asset Management (DWS) recorded $23.6 billion (€20 billion) net inflows, with the Asset Management business total assets reaching a record high at $1.01 trillion (€859 billion). The net inflows includes €3.8 billion in going into Environmental, Social and Governance (ESG) assets. For 2021 Q2, Asset Management (DWS) reported net revenue of €626 million, an increase of 14% (YOY).
Deutsche Bank:
- Deutsche Bank Hires Terence Leong as Group Head South East Asia Wealth Management, 3 HSBC Private Bankers
- Deutsche Private Bank Launches 4 Funds with Regular Income Using ETFs, AUM at $4.1 Billion
- Deutsche Bank Launches ESG Centre of Excellence in Singapore
- Deutsche Bank Survey: 75% of Private Bank Clients View Investments Should Have Positive Impact to the World
- Malaysia Sues JP Morgan, Deutsche and Coutts for $2.93 Billion, Receives $452 Million from United States
- Deutsche Bank to Create $281 Billion International Private Bank
More:
- 2020 List of International Private Banks in Hong Kong
- 2020 List of International Private Banks in Singapore
- 2020 Top 10 Largest Family Office in the World
- 2020 Top 10 Largest Multi-Family Offices in the World
About Deutsche Bank International Private Bank
Deutsche Bank’s Private Bank corporate division combines the private banking expertise of the market-leading Deutsche Bank and Postbank brands in Germany with the global network of the International Private Bank (IPB). This includes IPB’s global business with high net worth individuals and SMEs.
The Private Bank provides high-quality financial services from a single source. These range from comprehensive services for private customers and support for demanding entrepreneurs and their families, to solutions for SMEs in important Eurozone markets and India.
The Private Bank is one of the four pillars of Deutsche Bank, along with the Corporate Bank, Investment Bank and DWS, the institution’s asset management unit. Deutsche Bank is a leading bank in Germany with a global network and strong European roots.
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