Deutsche Bank Private Banking Stagnates Despite Asset Inflow Surge

The Frankfurt-based lender saw total assets under management climb 13 percent year-on-year to €732 billion, bolstered by €8 billion in investment flows. Despite this expansion, the division’s cost-to-income ratio remained locked at 69.5 percent. Higher expenses weighed on the unit, with provisions for credit losses surging 51 percent to €177 million, while noninterest expenses rose 8 percent to €1.784 billion.

Group-wide performance painted a different picture, as Deutsche Bank posted a record quarterly after-tax profit of €1.9 billion, a 10 percent increase. This rise in group profitability was supported by an 11 percent gain in pre-tax profit to €2.7 billion. The bank successfully realized €200 million in operating efficiencies during the quarter, though shares have struggled, declining 7.8 percent since January. In a broader market context, the results highlight a widening gap in scale; rival UBS reported a 17 percent increase in net profit, pulling in $36 billion in new assets compared to Deutsche Bank’s €9 billion.