Loading ...Deutsche Bank Tumbles As Trading Revenues Plummet
If one ever needed evidence that such a thing as bank karma exists, look no further than Deutsche Bank, which after manipulating and rigging every market it traded in, violating virtually every regulation and anti-money laundering rule in existence, and quietly witnessing the bizarre, unexplained suicide by more than one senior official, has been caught in a downward spiral of spectacular collapse which culminated recently with the biggest corporate restructuring and mass layoff announced by a major bank. And then there are the earnings.
On Wednesday, the bank that is set to layoff over 20% of its workforce, reported a dramatic decline in trading revenue resulting in a far bigger than expected €3.16 billion net loss, a far cry from the €361MM profit a year ago. While the revenue of €6.2 billion was in line with the preliminary release from July 7, the bank warned that 2019 group revenue would be lower than 2018, blaming lower interest rates on increasing pressure on revenue after trading slump deepened in the second quarter, adding urgency to Chief Executive Officer Christian Sewing’s overhaul plans.
