Deutsche Bank's prime finance revenue fell in Q2
28 July 2017 Frankfurt
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A Q2 2017 characterised by falling revenues saw Deutsche Bank hit particularly hard in equities sales and trading, where a decline in prime finance “predominantly” drove a 28 percent year-over-year slump.
Revenue from equities sales and trading fell to €537 million from Q2 2016, a drop that Deutsche Bank blamed on declining prime finance revenues, although it’s unclear by how much they decreased.
Deutsche Bank embarked on a restructuring strategy in 2015 and planned to “selectively reinvest” in “less balance sheet intensive businesses”, including prime brokerage.
As part of the wider strategy at Deutsche Bank, its headcount fell 1,525 to 96,652 employees in Q2 2017, despite approximately 100 further net hires in anti-financial crime and compliance.
Group net revenues at Deutsche Bank in Q2 2017 decreased 10 percent to €6.6 billion.
John Cryan, CEO of Deutsche Bank, said: “Our second-quarter results give a good summary of where we stand today. Profitability is significantly better than a year ago. We made good progress in bringing costs down and continued to attract net money inflows from clients.”
“Despite the significant improvement, this level of profitability falls short of our longer term aspirations. Revenues were not as universally strong as we would have liked, in large measure because of muted client activity in many of the capital markets. As we modernise our bank we are turning our focus onto building profitable growth.”
Revenue from equities sales and trading fell to €537 million from Q2 2016, a drop that Deutsche Bank blamed on declining prime finance revenues, although it’s unclear by how much they decreased.
Deutsche Bank embarked on a restructuring strategy in 2015 and planned to “selectively reinvest” in “less balance sheet intensive businesses”, including prime brokerage.
As part of the wider strategy at Deutsche Bank, its headcount fell 1,525 to 96,652 employees in Q2 2017, despite approximately 100 further net hires in anti-financial crime and compliance.
Group net revenues at Deutsche Bank in Q2 2017 decreased 10 percent to €6.6 billion.
John Cryan, CEO of Deutsche Bank, said: “Our second-quarter results give a good summary of where we stand today. Profitability is significantly better than a year ago. We made good progress in bringing costs down and continued to attract net money inflows from clients.”
“Despite the significant improvement, this level of profitability falls short of our longer term aspirations. Revenues were not as universally strong as we would have liked, in large measure because of muted client activity in many of the capital markets. As we modernise our bank we are turning our focus onto building profitable growth.”
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