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Dekabank sees 60% YOY jump in net sales thanks to institutional clients

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Dekabank sees 60% YOY jump in net sales thanks to institutional clients

Germany-based cooperative banking group DekaBank Deutsche Girozentrale booked a 60% year-over-year surge in net sales to €20.7 billion in the first nine months of 2017, thanks mainly to its growing institutional clients business.

Net sales to institutional clients for the period jumped by 73% year over year to €11.6 billion. Net sales in the retail banking business, where Dekabank works with clients of German savings banks, increased 44% year over year to €9.1 billion.

Dekabank is on track to post a new net sales record, the bank said in its latest trading update Nov. 21. The year-to-date result is very close to the highest-ever net sales of €22.9 billion achieved by the bank in 2000, Handelsblatt said in a report the same day.

The strong net sales growth was one of the main drivers for an increase in total assets to €282.6 billion as of Sept. 30, compared with €256.8 billion at 2016-end.

The bank's economic result reached €412.2 million in the first nine months of the year, up 18.1% from €349.1 million in 2016, and was chiefly driven by higher net commission income. DekaBank reaffirmed its full-year guidance for an economic result roughly at the level of the 2016 figure of €415 million.

The bank's net commission income rose 11.5% year over year to €894 million. Net interest income went up slightly to €114.6 million from the prior-year €110.7 million.

Pretax return on equity for the first nine months of the year improved to 12.1% from 10.8% in the same period of 2016.

The group's common equity Tier 1 capital ratio stood at 17.5% as of Sept. 30, up from 16.7% at the end of 2016 but down from 18% at the end of June. The bank said its fully loaded CET1 ratio is expected to decline by the end of the year due to an expected increase in loan volumes, although it is expected to remain above 13%.