Deutsche Bank says Q3 revenues significantly lower
FRANKFURT, Sept 25
FRANKFURT, Sept 25 (Reuters) - Deutsche Bank co-Chief Executive Anshu Jain said third-quarter investment banking revenues would be significantly lower as a lull in trading on bond markets hit Germany's flagship lender.
"Market activity (has been) substantially lower, which has affected our CB&S (investment banking) revenues", Jain said. "We currently anticipate debt sales and trading revenues in the third quarter to decline significantly from last year."
He added that last year revenues had received a boost from stimulus measures by the European Central bank, a catalyst for earnings, which did not repeat this year.
JP Morgan analysts forecast that Deutsche Bank's third-quarter revenue from fixed income, currencies and commodities (FICC) could fall 31 percent on the year, to 1.6 billion euros ($2.2 billion).
The slowdown in bond market trading has been blamed on expectations that the U.S. Federal Reserve would start "tapering" its bond buying programme, though the Fed last week surprised investors by holding off on the start of the process.
Barclays last week said income in July and August was down 500 million pounds ($802 million) from a year ago, mainly due to its FICC woes. (Reporting by Edward Taylor)
- U.S. Mega Millions lottery up to $400 million, 2nd-biggest ever
- Uruguay becomes first country to legalize marijuana trade
- Pope Francis named Time's Person of the Year
- Thousands of South Africans line up to see Mandela lie in state |
- China bitcoin arbitrage ends as traders work around capital controls