Deutsche Asset and Wealth Management (DeAWM) has recorded an increase in income for the third quarter (Q3) of 2014, while the bank that ownsit, Deutsche Bank, suffered substantial losses.
DeAWM's income before income taxes (IBIT) was €288 million for the three months to September, a 2% increase on the same period in 2013. The company attributes the rise to lower noninterest expenses and net new money of €17 billion.
DeAWM had recorded positive results in the second quarter also, with net new money of €11 billion, picking up from a 23% decline in IBIT during Q1.
Overall, Deutsche Bank reported a net loss of €92 million in its group results for Q3, compared to net income of €51 million for the same period in 2013.
This result follows the bank's announcement of litigation costs of €894 million for the quarter.
Jürgen Fitschen and Anshu Jain, co-chairmen of the management board, say in a statement: "In the third quarter we met several challenges. We took substantial litigation charges and saw reduced profits in investment banking, leading to a lower quarterly result.
"Notwithstanding this, we made progress in key areas. ... Deutsche Asset & Wealth Management produced one of its strongest ever quarters."
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