Deutsche Bank today reported net income of EUR 1,026 mn for the first quarter 2001¹, a 76.6 % increase over 4Q2000, and a 6.9 % increase over 1Q2000. Diluted earnings per share (excluding goodwill amortization) were EUR 1.88, up by 74 Cents from 4Q2000 and 9 Cents from 1Q2000.
Despite a weaker market environment characterized by reduced transaction volumes and limited placement and advisory business, CIB generated net revenues of roughly EUR 5 bn, almost matching the previous year's record level. An important contributor to this result came from our Global Corporate Cash Management business. Despite the difficult market environment, the Corporate Banking and Securities Division recorded revenues close to the prior year level. Growth especially in Debt Origination largely made up for decreasing revenues in other areas. CIB pre-tax earnings of EUR 1.1 bn reflect an increase in provision for losses on loans and advances to EUR 149 mn, and an increase of EUR 118 mn in operating expenses, largely due to exchange rates.
PCAM achieved net revenues of more than EUR 2 bn, compared to EUR 2.1 bn in the prior year. The quarter results reflect difficult overall market conditions as well as the impact of an increase in operating expenses to fund investments and special projects which were launched recently. The effects of exchange rate changes also caused increasing operating expenses. In our Personal Banking Division, higher revenues from deposits and lending more than made up for declining revenues from securities. The increase in costs in that business is mainly attributable to the roll-out of "maxblue", our pan-European online broker, preparations for distribution of the Euro and the European expansion of Deutsche Bank 24. In our Private Banking Division, declining securities revenues due to lower activity in the U.S.A. was the principal reason for lower revenues and profits. In the Asset Management Division, the measures taken to expand and globally align business led to higher operating expenses and reduced pre-tax earnings.
Cost management continues to be a high priority in all Divisions, particularly during these difficult markets. However, as always we shall make strategic investments which management deems prudent and necessary to achieve our long-term goals.
¹including EUR 234 mn for the effect of adopting IAS 39
²excluding cumulative remeasurement result from available-for-sale financial assets and goodwill amortization