Deutsche Bank reports fourth quarter 2014 net income 

Deutsche Bank reports fourth quarter 2014 net income of EUR 441 million

Group results

Fourth quarter 2014 results

• Income before income taxes (IBIT) of EUR 253 million
• Core Bank IBIT, which excludes the Non-Core Operations Unit (NCOU), of EUR 943 million, up EUR 1.4 billion from the prior year period
• Net revenues of EUR 7.8 billion, up 19% year over year largely reflecting higher revenues in Corporate Banking & Securities (CB&S)
• Noninterest expenses of EUR 7.2 billion, down 5% from 4Q2013
• Adjusted cost base of EUR 6.0 billion, up 7% from 4Q2013
• Net income of EUR 441 million; post-tax return on average active equity (RoE) in 4Q2014 of 2.6% for the Group

Full year 2014 results

• Income before income taxes (IBIT) of EUR 3.1 billion more than doubled year over year
• Core Bank IBIT of EUR 6.0 billion, up EUR 1.1 billion from FY2013
• Net revenues of EUR 32.0 billion were stable compared to prior year
• Noninterest expenses of EUR 27.7 billion, down 2% from 2013
• Adjusted cost base of EUR 23.8 billion, up 3% from last year
• Net income of EUR 1.7 billion; post-tax return on average active equity (RoE) in 2014 of 2.7% for the Group

Capital and de-leveraging

• Common Equity Tier 1 (CET1) ratio of 11.7% on a fully loaded Capital Requirements Regulation (CRR)/Capital Requirements Directive 4 (CRD4) basis at quarter end
• Phase-in CET1 ratio of 15.2%
• Risk-weighted assets (RWA) on a fully loaded CRR/CRD4 basis of EUR 394 billion, down 2% from 3Q2014
• CRD4 fully loaded leverage ratio of 3.5% (based on revised CRD4 rules), driven by EUR 81bn of exposure reduction in the quarter
• Tangible Book Value per share of EUR 38.53 increased 3.1% compared to 3Q2014

Segment results

Fourth quarter 2014 results

• Corporate Banking & Securities (CB&S) 4Q2014 IBIT was EUR 516 million, up EUR 384 million from prior year fourth quarter reflecting solid revenues, lower litigation expense and cost-to-achieve (CtA)
• Private & Business Clients (PBC) 4Q2014 IBIT of EUR 55 million decreased by EUR 163 million from prior year as stable revenues, and lower provision for credit losses were more than offset by EUR 330 million extraordinary charges for the reimbursement of loan processing fees
• Global Transaction Banking (GTB) IBIT of EUR 265 million increased by EUR 179 million compared to 4Q2013  due to revenue growth, lower provision for credit losses and specific items in the prior year quarter
• Deutsche Asset & Wealth Management (Deutsche AWM) 4Q2014 IBIT stood at EUR 365 million, up EUR 165 million compared to last year fourth quarter benefitting from a EUR 83 million partial write up of intangibles for Scudder. Net new money inflows, which continued for the fourth consecutive quarter, were EUR 10 billion
• Non-Core Operations Unit (NCOU) loss before income taxes was EUR 690 million compared to a loss of EUR 1,272 million in 4Q2013 reflecting higher revenues, lower credit losses and decreased noninterest expenses

Source: Deutsche Bank – Deutsche Bank reports fourth quarter 2014 net income of EUR 441 million

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