Krijgt mee klappen, maar publiceerde vandaag wel excellente cijfers. WPA voor 2007 waarschijnlijk rond 14, aandeel staat momenteel 98 = K/W van 7; als je dat naast de winstgroei zet, tja...
Deutsche Bank reports second quarter 2007 net income of EUR 1.8 billion, up 31%
• Income before income taxes of EUR 2.7 billion, up 32%
• Total revenues of EUR 8.8 billion, up 27%
• Pre-tax return on average active equity of 36% for the second quarter, 40% for the first six months
• Diluted earnings per share of EUR 3.60 for the second quarter, up 48%, and EUR 7.86 for the first six months, up 41%
• Net new money of EUR 13 billion
FRANKFURT AM MAIN, 1 August 2007 – Deutsche Bank (XETRA: DBKGn.DE / NYSE: DB) reported income before income taxes for the second quarter 2007 of EUR 2.7 billion, up 32% versus EUR 2.0 billion in the second quarter 2006. Net income was EUR 1.8 billion, up 31% versus EUR 1.4 billion in the prior year quarter. Pre-tax return on average active equity was 36%, versus 33% in the second quarter 2006, on average active equity which was up by EUR 5.3 billion, or 22%, over the prior year quarter. Diluted earnings per share were EUR 3.60, up 48% versus the prior year quarter. Per the bank’s target definition, which excludes certain significant gains and charges, pre-tax return on average active equity was 35%.
For the first six months of 2007, income before income taxes was EUR 5.9 billion, up 26% versus the first six months of 2006. Net revenues were EUR 18.4 billion, up 23%, while net income rose 30% to EUR 3.9 billion. Pre-tax return on average active equity was 40%, compared to 38% in the first half 2006, and diluted earnings per share rose 41% to EUR 7.86. Per target definition, pre-tax return on average active equity was 38%.
Dr. Josef Ackermann, Chairman of the Management Board, said: “After an excellent first quarter, we delivered another outstanding quarterly result, with significant earnings growth over the same period last year. All our business divisions contributed to this growth. As a result, we delivered a very strong first half year, clearly demonstrating the power and resilience of our platform.”
He added: “Looking forward, uncertainties persist in the world’s financial markets in the short term. Some areas of the credit markets may continue to experience turbulent conditions, and investors may adopt a more conservative stance toward leveraged finance. Our business model which benefits from rigorous risk management and independent control processes is structured to deliver performance also in the face of such challenges. We have consistently adopted a prudent approach to risk-taking, and the current environment is no exception. We firmly believe that these qualities will enable us to continue to perform strongly.”
Group Highlights
Net revenues for the second quarter 2007 were EUR 8.8 billion, up 27% versus the second quarter 2006, reflecting year-on-year growth in all business divisions.
In the Corporate and Investment Bank (CIB), revenues in Sales & Trading rose 34% to EUR 4.3 billion, a second-quarter record, driven by broad-based performance across both Debt and Equities. Revenues in Sales & Trading (Debt and other products) rose 18% to EUR 2.9 billion, reflecting strong performances in credit products and emerging markets debt. Revenues in Sales & Trading (Equity) rose 89% to EUR 1.4 billion, reflecting strong year-on-year growth across all customer-oriented businesses and a rebound in designated proprietary trading. Both Origination and Advisory recorded best-ever quarterly revenues. Origination revenues rose 12% to EUR 638 million with strong growth in equity and investment grade debt, while advisory revenues rose 63% to EUR 256 million against a backdrop of strong M&A activity. Revenues in Global Transaction Banking rose 16% to EUR 656 million, reflecting growth in Trust & Securities Services and Cash Management.
In Private Clients and Asset Management (PCAM), revenues were up 11% to EUR 2.6 billion. In Private & Business Clients (PBC), revenues were EUR 1.4 billion, up 15%, reflecting the acquisition of Berliner Bank and norisbank, together with organic revenue growth. In Asset and Wealth Management (AWM), revenues rose 7% to EUR 1.1 billion. Performance fees in real estate asset management rebounded from the first quarter, although they remained lower than the exceptional levels of the second quarter 2006, while revenues in retail asset management recorded year-on-year growth. Revenue growth in Private Wealth Management (PWM) reflected both organic expansion and the acquisition of Tilney in the U.K.
Revenues in Corporate Investments (CI) rose 62% to EUR 259 million, reflecting a net gain from a sale and leaseback transaction related to bank-occupied premises and dividends from industrial holdings.
Provision for credit losses in the second quarter was EUR 81 million, down from EUR 98 million in the first quarter and essentially unchanged from EUR 82 million in the second quarter 2006. In PCAM, provisions were EUR 124 million, up from EUR 94 million in the second quarter 2006, reflecting the aforementioned acquisition of norisbank and Berliner Bank and continued organic growth in PBC’s loan book. This increase was offset by higher CIB releases and recoveries compared to the prior year quarter.
Noninterest expenses for the quarter were EUR 6.0 billion, up 25% versus the second quarter 2006. Compensation and benefits expenses for the quarter rose 27% to EUR 3.9 billion, reflecting an increase in performance-related compensation in line with strong business results and a rise in staff numbers resulting from both acquisitions and organic growth. Amortization of equity compensation was higher than in the prior year quarter but lower than in the first quarter of 2007. Non-compensation expenses for the quarter rose 20% to EUR 2.1 billion, reflecting several contributing factors, including acquisitions, higher litigation provisions, technology expenditures and other expenses driven by higher business volumes. The cost-income ratio for the quarter was 68%, down from 69% in the prior year quarter. The ratio of compensation and benefits to revenues was 44%, unchanged from the second quarter 2006, while the ratio of non-compensation expenses to revenues was 24%, down from 26% in the prior year quarter.
Income before income taxes for the quarter was EUR 2.7 billion, up 32% versus the second quarter 2006. Pre-tax return on average active equity was 36%, compared to 33% in the second quarter 2006. Per target definition, which excludes certain significant gains (net of related expenses) of EUR 131 million in the current quarter, pre-tax return on average active equity was 35%, versus 33% for the prior year quarter, in which no such gains or charges were reported.
Net income for the quarter was EUR 1.8 billion, up 31% versus the prior year quarter. Diluted earnings per share were EUR 3.60, up 48% versus EUR 2.44 in the second quarter 2006. The increase of diluted earnings per share in the current quarter benefited from the modification, in late 2006, of certain derivatives contracts, related to trading in Deutsche Bank shares. Excluding this effect, the increase in diluted earnings per share over the prior year quarter would have been 32%. The effective tax rate for the quarter was 34%, unchanged to the prior year quarter.
The BIS Tier 1 ratio was 8.4% at the end of the quarter, within