Trading drives profits down at Deutsche Bank

Equities sales and trading revenues saw a significant 28% decline as fixed income plummeted 12% year-on-year.

Trading in the second quarter at Deutsche Bank suffered declines across fixed income and equities, as the corporate and investment bank unit posted a 16% drop in net revenues.

In fixed income and currencies sales and trading, revenues decreased 12% from €1.5 billion in the second quarter last year to €1.1 billion.

FX and rates revenues were down year-on-year, driven by a difficult quarter for the bank’s market making business and low volatility, Deutsche Bank said.

Similarly, equities sales and trading revenues plummeted 28% from €742 million in the second quarter last year to €537 million.

Prime finance revenues were significantly lower in the second quarter this year compared to the same period last year, as equity derivatives and cash equity revenues also dropped.

Overall, the corporate and investment bank business posted a 16% decrease in net revenues in the second quarter this year compared to last year.

Chief executive officer at Deutsche Bank, John Cryan, explained the results in the second quarter provide a good summary of where the bank stands today.

“This level of profitability falls short of our longer term aspirations,” Cryan said.

“Revenues were not as universally strong as we would have liked, in large measure because of muted client activity in many of the capital markets. As we modernise our bank we are turning our focus onto building profitable growth.”