Debt business lifts Deutsche Bank’s profits

Tim Wallace
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IMPROVED investor sentiment and rising market activity pushed Deutsche Bank’s debt incomes up in the third quarter, the institution reported yesterday, contributing to a boom in profits.

And the bank plans to continue to grow strongly by seizing market share from Swiss bank UBS, which is cutting back its investment business to focus on areas like wealth management.

Pre-tax profits came in at €1.1bn (£887m) in the three-month period, up 20 per cent on the €942m in the same quarter of last year.

The debt sales and trading arm excelled, with net revenues of €2.5bn, up 67 per cent on the year.

The equity arm performed similarly strongly, with revenues of €642m, while origination and advisory revenues came in at €677m- up 81 per cent.

Retail banking also expanded, adding €492m to the group’s profits.

But expenses increased to €7bn, including €276m of restructuring costs – partly due to redundancy costs from 1,900 job losses – and €289m in litigation-related expenses.

The changes are part of a €4.5bn savings plan announced in September, which should be complete by 2015.

Deutsche Bank’s shares jumped 3.48 per cent yesterday.