Wednesday 29 July 2020 10:12 am

Deutsche Bank boosted by bond trading amid pandemic

Deutsche Bank reported its biggest surge in fixed income trading revenue in eight years amid the coronavirus crisis.

Read more: Deutsche Bank to end global business activities in coal mining by 2025

The figures

Deutsche Bank reported pre-tax profit of €158m compared to a pre-tax loss of €946m in the second quarter of 2019. It also reported net profit of €61m compared to a net loss of €3.1bn in the same period last year.

Group net revenues for the period were up one per cent to €6.3bn despite the exit of equities. Core bank net revenues were up six per cent to €6.4bn, while investment bank revenues were up 46 per cent.

The group reported net flows of €9bn for the second quarter which it said demonsrated “the benefits of a
diversified business model in a difficult market environment”.

Provisions for credit card losses were almost five times higher than in the same period last year.

Why it’s interesting

Deutsche Bank reported a huge surge in bond trading revenue, its biggest in eight years.

The bank claimed its restructuring efforts were on track, with non-interest expenses down 23 per cent year-on-year to €5.4bn.

Deutsche now anticipates that full-year revenues will be “essentially flat,” a more optimistic guidance than previous projections.

The bank’s shares edged up 0.4 per cent before falling by one per cent by 10am.

Read more: Deutsche Bank fined $150m for compliance failures linked to Jeffrey Epstein

What Deutsche Bank said

Chief executive Christian Sewing said: “In a challenging environment we grew revenues and continued to reduce costs, and we’re fully on track to meet all our targets.”

“This enabled us to more than offset higher provision for credit losses and remain profitable while supporting clients through difficult conditions. Our strong capital position not only demonstrates our resilience, but also gives us scope for growth.”

Get the news as it happens by following City A.M. on Twitter