Bond trading boosts revenues for Barclays and Deutsche Bank

European banks join third quarter bond trading trend seen in the US.

Barclays and Deutsche Bank have reported a boost in profits, mostly driven by a surge in bond trading revenues.

Deutsche Bank’s global markets business saw a 10% revenue increase in the third quarter this year, compared to the third quarter of 2015.

The bank said this was “driven by solid performance in debt sales and trading.”

Similarly, Barclays’ markets business income was up 4% in the third quarter this year compared to the same period last year, totalling £4.1 billion.

Credit revenues increased 47% to £924 million “driven by a strong performance in the fixed income credit flow businesses.”

Both banks reported a dip in equities revenues, as much as 13% for Barclays, as foreign exchange income remained largely unchanged at Deutsche Bank.

John Cryan, chief executive officer of Deutsche Bank, said the recent negotiations with regulators over a significant fine for issues relating to residential mortgage backed securities had “an unsettling effect.”

“The bank is working hard on achieving a resolution of this issue as soon as possible,” he added.

Chief executive officer at Barclays said its core businesses “are performing well” adding that the bank “is on top of costs and our capital position is resilient.”

Tier one US banks reported similar scenarios, with revenues boosted by bond trading income in the third quarter this year compared to last year.

Earlier this month, Goldman Sachs reported a 47% increase in third quarter revenues to over $2 billion, driven by a 34% surge in its fixed income trading sales in the same period.