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Wednesday, April 6, 2016

Asset Management is a Bright Spot For Deutsche

Reported by Neil Anderson, Managing Editor

For the first time, Deutsche Bank [profile] is breaking out numbers specifically on its asset management unit, and it's looking pretty strong compared to the bank's other key units.

John Cryan
Deutsche Bank
Co-Chief Executive Officer
The giant German multinational bank's "financial data supplement 2015" breaks its 2015 results down into five key areas, plus non-core operations unit. Asset management worldwide had a "post-tax return on average tangible shareholders' equity of 42.6 percent, and as Seeking Alpha points out that's a higher ROE than in any of the other four core units: global markets (-5.8 percent), corporate and investment banking (8.4 percent), private wealth and commercial clients (-6.3 percent), and postbank (-30.2 percent).

The numbers come mere months after a big Deutsche restructuring, which included the splitting of Deutsche Asset & Wealth Management (and the departure of some top execs there). Asset management became its own division, while private wealth management merged into Deutsche's private and business clients division.

DeAM's worldwide headcount rose 3.3 percent last year to 2,815 (the supplement does not break out specific numbers for the U.S. side of DeAM), and its noninterest expenses rose 19 percent to 2.452 billion euros ($2.79 billion). Yet its income before taxes also rose, by 11 percent, to $854 million. 

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