Merkel faces CARNAGE: Deutsche Bank CRISIS as revenues SINK with NO IDEA of recovery time
DEUTSCHE Bank stocks tumbled today after it reported a 10 per cent drop in revenue, with bosses clueless as to when results will improve.
By HELEN BARNETT
Express.co.uk
Thu, Oct 26, 2017
Germany’s biggest bank reported a disastrous £6.05billion (€6.8bn) drop in revenue in the three months to September compared to the year before.
The “terrible” 9.6 per cent drop year on year was blamed on a weak market, low interest rates and the bank’s ongoing restructuring programme.
The fall in revenue was a combination of factors stemming from the investments arm – with a 23 per cent fall in income for the corporate and investment bank division and a 36 per cent drop in bond and currency trading revenue.
James von Moltke, the bank’s chief finance officer, hinted a savings programme could be around the corner as he said the bank would need to “manage costs carefully” until investor activity increased.
And he said it was “very hard to answer” when revenue would recover.
He said: “We swim in a pool with our competitors and particularly the capital markets environment has been weak in the past couple of quarters, so we’re looking for that to pick up.”
Analysts told Express.co.uk “time is running out” to turn things around before investors start demanding new leadership.
The bank was forced to pay a £167m ($220m) fine yesterday after US regulators accused it of manipulating interest rates.
And revenues in Deutsche Bank’s bond trading division slumped 36 per cent in the third quarter due to reduced market volatility and decreased client activity.
The Rest…HERE
