Deutsche Bank CEO Flags Q1 Trading Revenue Decline

CEO's First-Quarter Revenue Outlook

Deutsche Bank CEO Christian Sewing projects a decline in trading revenue for the first quarter, citing unfavorable currency swings as the primary cause. He noted that the final figures could still change as the quarter is not yet complete.

Investment Bank Performance Overview

Despite the expected dip in trading, overall revenue at the investment bank is forecasted to remain flat year-over-year. According to Sewing, rising income from origination and advisory business lines is set to offset the weakness in fixed income.

Context and Projections

Sewing clarified that when adjusted for foreign exchange effects, the trading business is showing underlying growth. This performance is being compared against a very strong first quarter from the previous year, which sets a high benchmark.

Summary

In conclusion, while currency headwinds are negatively impacting Deutsche Bank's headline trading numbers, the broader investment banking division demonstrates stability. The focus remains on the offsetting strength in advisory services and the underlying growth in trading when viewed on a currency-neutral basis.

FAQ

Q: Why is Deutsche Bank's Q1 trading revenue expected to fall?
A: The expected decline is primarily due to the negative impact of unfavorable foreign exchange rate movements.

Q: How is the overall investment bank performing?
A: The investment bank's total revenue is expected to be flat, as growth in advisory and origination is compensating for the drop in fixed-income trading.

Source: Investing.com