Deutsche Bank reports trading slump, warns of further cuts

John Cryan, chief executive officer at Deutsche Bank, has warned cuts could intensify if results don’t improve.

Deutsche Bank’s trading sales have plummeted by almost a third, as chief executive officer John Cryan warns its restructuring process will be intensified should the economic environment not improve.

The global markets business revenues dropped 28% to €2.4 billion in the second quarter this year, compared to the same period last year.

Equities suffered a significant 31% decrease, totalling €720 million compared to just over €1 billion in the second quarter in 2015.

Similarly, fixed income and currencies fell 19% year-on-year, accumulating €1.8 billion of revenues.

Foreign exchange remained relatively flat in the second quarter this year, as the EU referendum saw an increase in client activity.

Overall, revenues at Deutsche Bank were 20% lower in the second quarter this year, “reflecting a challenging environment and strategic decisions.”

The quarterly report said pre-tax profit was down a substantial 67%, “after goodwill impairment charges of €285 million, restructuring and severance charges of €207 million, and litigation charges of €120 million.”

Cryan, said the results reflect the restructuring process, although explained, “if the current weak economic environment persists, we will need to be yet more ambitious in the timing and intensity of our restructuring.”

He added the bank is “satisfied with the progress” it is making.