Deutsche Bank Trading Revenue Plunges 30% As CEO’s Time Running Out

Thursday, October 26, 2017
By Paul Martin

by Tyler Durden
ZeroHedge.com
Oct 26, 2017

Deutsche Bank’s Q3 2017 revenues were €6.78 billion, below market expectations of €6.88 billion. The share price fell 2.7% shortly after the European market open. The problem – like the previous quarter – was a bigger-than-expected drop in trading revenues. Trading revenue was down 30% year-on-year to €1.512 billion versus €2.162 billion in Q2 2017.

The challenge for the embattled CEO, John Cryan, is that the trend is still deteriorating. Trading revenues in Q2 2017 fell 18% year-on-year to 1.666 billion euros versus 2.027 billion euros. Earlier this year, Cryan pledged to turnaround the performance of the investment bank as soon as this year. On a more positive note, earnings – which obviously possess a near-term degree of flexibility in the banking sector – beat expectations. This mirrored Q2 2017, as Cryan continued to apply a knife to the cost base (although end Q3 headcount rose “slightly” versus end Q2 – probably compliance).

The countdown to Cryan’s replacement is ticking every louder: “These aren’t the kind of numbers you want to keep seeing,” said Markus Riesselmann, an analyst at Independent Research in Frankfurt (who has a buy reco on the bank). “The longer this goes on, the harder it gets to believe management’s hopes for a recovery. We cannot see another two or three quarters like this.”

The Rest…HERE

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