Deutsche Bank's private client and asset management division saw underlying pre-tax profit in the first quarter reach E558 million, up 37% versus the first quarter 2005.
Income before income taxes, after taking into account restructuring charges of E20 million, was E538 million in the first quarter 2006, up 49% or E176 million versus the first quarter 2005
During the first quarter 2006, the unit’s invested assets grew by E18 billion to E885 billion compared to E867 billion at year end 2005. The growth was largely attributable to net new assets of E12 billion, including net inflows of E8 billion in the European retail asset management business and of E4 billion in private wealth management. The remaining net increase in invested assets was attributable to market appreciation, in part offset by foreign exchange rate movements.
In the asset and wealth management (AWM) arm, underlying revenues in the first quarter were E1.0 billion, up E157 million or 18% versus the first quarter 2005. Portfolio and /fund management revenues increased 14%, primarily reflecting higher management fees, particularly in the retail business in Germany corresponding to the aforementioned growth in invested assets, as well as higher levels of performance fees in the real estate businesses.
AWM’s underlying pre-tax profit was E238 million, an increase of E75 million, or 46%, versus the first quarter 2005.