Deutsche Bank’s DB -0.92% buying and selling arm had a cork-popping third quarter, however the lender’s turnaround nonetheless wants a broader answer to the persistent drawback of ultralow rates of interest.
Germany’s largest bank posted an sudden €309 million quarterly revenue Wednesday, buoyed by a 47% net-revenue enhance in its fixed-income buying and selling actions. That uplift was higher than at most Wall Road rivals, implying market-share beneficial properties for Deutsche. The end result helps refute considerations that the slimmed-down funding financial institution may battle in opposition to full-service friends.
The flip facet is that the market volatility that fueled these outcomes is unlikely to final. What the lender’s normalized funding banking returns is perhaps is anybody’s guess.
Company and personal banking are Deutsche Financial institution’s bread and butter and should ship income for a successful turnaround. Their third-quarter numbers have been weaker. Revenues have been squeezed by ultralow rates of interest that present no signal of turning. Each €100,000 (equal to $117,000) eurozone deposit prices the financial institution about €500 a yr, earlier than it even touches it.