Net revenues at the private clients and asset management arm of Deutsche Bank, Germany’s largest bank, fell to €3.4 billion.

Net revenues at the private clients and asset management arm of Deutsche Bank, Germany’s largest bank, fell to €3.4 billion (around $4.49 billion) in the first three months of this year compared with €4.1 billion a year before, the bank said today.

The figures were “positively impacted” by €263 million related to Deutsche’s stake in Hua Xia Bank for which equity method accounting was applied for the first time. The remaining decrease was mainly attributable to lower operating revenues in Postbank driven by the impact of de-risking activities and also reflecting a low interest rate environment, as well as lower releases of loan loss allowances recorded prior to consolidation.

Later, analysts at Mediobanca said they were retaining an "underperform" rating on the German bank's shares. Its target price on Deutsche Bank is unchanged at €27.

Deutsche Bank said added that retail client investment activity remained subdued, especially in Germany.

Within the asset and wealth management (AWM) business segment, the firm reported net revenues of €883 million in the first quarter, down €119 million, or 12 per cent, compared to the same period in 2011.

Revenues from other products declined by €87 million (from €116 million to €29 million) compared to the same period last year, Deutsche Bank said in a statement.

Of this decline, €57 million, or 63 per cent, was attributable to Private Wealth Management, which was significantly impacted by positive effects from the realignment of Sal Oppenheim – the acquired wealth manager - in 2011. The remaining decline in revenues from other products of €30 million was attributable to asset management reflecting lower gains on sale of investments.

Discretionary portfolio management and fund management revenues in AWM decreased by €40 million, or 8 per cent.

Across the bank as a whole, net income for the quarter was €1.4 billion, compared to €2.1 billion in the first quarter 2011. Diluted earnings per share for the quarter were €1.44, versus €2.13 in the first quarter 2011. Pre-tax return on average active equity, on a reported basis, was 14 per cent.

The bank’s Core Tier 1 capital ratio was 10 per cent at the end of the first quarter up from 9.5 per cent at year end.

In March, Deutsche Bank announced it is expanding its group executive committee. As previously reported, group chief executive Josef Ackermann is standing down this year.