The business reported inflows of £8.7bn (€11bn) across both its retail and institutional business, and £12.7bn (€16bn) in market appreciation that helped push invested assets to £756.5bn (€955bn).
According the bank’s interim report, the business was also helped by increased management fees and other recurring revenues, which rose 8% in the period on the back of its higher assets under management.
“DeAWM saw progression in the growth of its credit loan portfolio, with revenues and margins increasing while credit losses remain comparatively low,” it said, but cautioned that “ A fall in performance fees and reduced market volatility during the quarter have made conditions more challenging, with reduced client activity impacting trading revenues.”
The impact of lower volatility is one of the themes that has run through the results of a number of financial services firms’ earnings reports in recent weeks.
“Additionally, Deutsche said: “the prolonged low interest rate environment continued to challenge deposit revenue margins.
For the quarter, net revenues were£870m (€1.1bn) within the business unit, up 9% on the prior period. This it said, was mainly the result of “mark-to-market movements on policy holder positions in Abbey Life, largely offset by higher policyholder benefits and claims within non interest expenses”.
Performance and transaction fees and other non-recurring revenues fell $40.4m (€51m) during the period on the back of lower performance fees in alternatives and active asset management, Deutsche said as well as lower transaction revenues from capital markets and foreign exchange products for private clients.
On the expenses side, Noninterest expenses fell 3% to £741m (€936m) in the second quarter 2014 decreased by £19.8m (€25m), driven down by operating expense improvements, partly offset by higher policyholder benefits and claims and litigation.
