Deutsche ends difficult year behind Credit Suisse and Barclays

Deutsche Bank dropped two places in a top 10 global investment bank ranking, as revenues fell 20%.

Deutsche Bank’s full-year investment banking revenues plummeted 20% in 2016, leading to Credit Suisse and Barclays overtaking it in the top 10 global investment bank ranking.

The ranking and statistics from Dealogic showed Deutsche Bank’s investment banking division made just under $2.7 billion in 2016, compared to $3.4 billion in 2015.

In 2015, the German bank was ranked 6th in the top 10 global investment banking revenue league, but 2016 saw both Credit Suisse and Barclays move ahead of it.

Deutsche Bank suffered a difficult 2016 after being issued with several fines and implementing a large-scale cost saving plan, which was announced earlier in the year.

In December, the bank agreed to pay a penalty of $3.1 billion and provide $4.1 billion in consumer relief in the US for selling toxic mortgage loans between 2005 and 2007.

In the same month, Deutsche Bank was slapped with a $37 million fine to settle an investigation into its US dark pool routing.

The Securities and Exchange Commission and New York attorney general said the bank had admitted violating state and federal securities law over a two-year period.

Deutsche was accused of misstatements and omissions relating to the marketing of its equities order router.

The German bank’s major cost saving plans were outlined in October 2016 and the strategy included reducing the number of clients in the bank’s global markets and corporate investment banking businesses by half, “especially in higher operating risk countries.”

The strategy saw 3,400 trading clients cut off from the bank in fixed income and equities sales trading, “given that approximately 30% of clients produce 80% of the revenues in these business divisions,” the bank said.

Deutsche is looking to save €3.8 billion by 2018 through restructuring and severance costs of between €3 billion and €3.5 billion.

«