And Italy's Intesa CEO said wealth management 'too pricey' for large deals.
Deutsche Bank eked out a small annual profit in 2020, its first since 2014, attributing it to strong gains at its investment banking division.
Net profit attributable to shareholders for 2020 was $136m (EUR113m), which compares with a 2019 loss of $6.9b (EUR5.7 b). Investment banking revenue rose 32% to $11.2b (EUR9.28b).
However, low interest rates and a slowdown in global trade pressured revenue at Deutsche’s other divisions, such as those for corporate and retail clients.
BNP Paribas beat analyst expectations when it reported its Q4 2020 net income of $1.9b (EUR1.59b). It marked a 15.9% drop in profit from the previous three-month period.
Annual profit reached $8.45b (EUR7b), down 13.5% from December 2019. Analysts polled by Refinitiv had predicted net income for 2020 of $7.85b (EUR6.5b). The lender set aside a further $1.69b (EUR1.4b) in loan loss provisions.
Despite euro zone banks having restrictions on dividends given the severe economic crisis in the region, BNP Paribas will pay out a dividend of $1.34 (EUR1.11) per share in May.
Intesa Sanpaolo Chief Executive Carlo Messina has said that current valuations in the wealth management sector did not warrant large acquisitions, but Italy’s biggest bank could look at small firms or networks of private bankers.
With its business model geared towards fee-earning businesses, Intesa reaps 61% of its gross income from wealth management and protection activities.
“We will be more focused on making acquisitions of teams or boutiques or other non-significant players in the market,” he said.
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