Deutsche Bank Luxembourg published its annual results for 2022 on Wednesday 10 May 2023.
The bank announced it had recorded a net profit of €186m for the year, compared to €148m in 2021, an increase of 26.5%. However, net interest income fell by €30.6m to €294.4m. Its balance sheet also grew to €29.5bn on 31 December 2022, compared to €27.5bn the previous year.
The bank said a €40.7m improvement in net commission income, driven by higher fees and commissions amounting to €126m, contributed to the bank’s positive result. At the same time, the cost to hedge the bank’s lending business and securities positions fell.
Loans and advances to clients increased by €2.4bn to €15.9bn in the past year, triggered by high demand for financing from corporate and private banking clients.
Despite the economic impact of the war in Ukraine on energy prices and inflation, Frank Rückbrodt, CEO of Deutsche Bank Luxembourg, said the bank: “again grew profitably and demonstrated the resilience of its business model. Even in difficult times, we remain a reliable and trustworthy partner for our international clients and the European economy.”
Bank will not be complacent
Rückbrodt said that although major restructurings now lie behind the bank, they “must not be complacent” and would strive to remain agile and continuously transform its operating and business models.
He added that the bank feels optimistic about the outlook for 2023. “We see continued high demand from our clients for financing and advisory services. We are confident we will again achieve a satisfying result based on our strong capital and liquidity and our prudent risk management.”
Still looking for a new building
Last year, Deutsche Bank Luxembourg announced it would be leaving its current headquarters in Kirchberg. The bank, which currently employs 320 people in Luxembourg, is still looking for a new premises and is expected to take a decision in the medium term.
Rückbrodt reaffirmed the bank’s commitment to stay in Luxembourg: “Deutsche Bank is assessing options regarding its future office space in Luxembourg at the end the lease contract for of its headquarters in Luxembourg. A decision has not yet been made. However, being in Luxembourg is not in question or under discussion.”