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Deutsche Asset & Wealth posts 8% Q4 revenue jump
by Dylan Lobo on Jan 20, 2014 at 08:11
Deutsche Asset & Wealth Management reversed losses in the fourth quarter on the back of a healthy rise in revenue.
The firm registered an income before income taxes (IBIT) of €199 million (£164 million) during the period versus a loss of €262 million in the corresponding period of the previous year, which included substantial impairment charges.
Revenue increased by 8% year-on-year thanks to growth in higher margin products within its active and alternative real assets businesses.
Outflows stood at €8 billion, which the firm said was mainly linked to cash and low margin products.
Its parent Deutsche Bank had a tough quarter, recording a net loss of €965 million for the last three months of the year as a slowdown in fixed income trading took its toll on earnings.
Commenting on the numbers, co chief executive officers Jürgen Fitschen and Anshu Jain, said in a statement: '2013 was the second successive year in which we have invested in the bank’s future growth and in further strengthening our controls while addressing legacy issues. These factors impacted our financial results.
Nonetheless, underlying core business profitability was amongst the highest of the past decade, and we have made Deutsche Bank fitter, safer and better balanced. We expect 2014 to be a year of further challenges and disciplined implementation; however, we are confident of reaching our 2015 targets and delivering on our strategic vision for Deutsche Bank.'
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