Deutsche Bank Draws Record €47 Billion: Can Europe's Bank Stocks Recover?

Deutsche Bank, described as Germany’s largest investment bank, attracted a record €47 billion in new client funds in the third quarter and reported €1.9 billion in after-tax profit. A record €31 billion went to its asset management arm DWS, mostly into passive funds that track an index, while its Private Bank, which serves households and wealthy savers, added a record €17 billion. Shares rose about 3% in Frankfurt on Wednesday morning, though Europe’s bank stocks had fallen 7% since early September. The bank set aside €501 million for bad loans, up 20% from a year earlier, citing commercial property sales and a one-off client problem in Asia, while loans grew 5%, or €22 billion, year on year.