Deutsche Bank Investment Banking Revenue Up 20% This Year
Comment of the Day

March 18 2021

Commentary by Eoin Treacy

Deutsche Bank Investment Banking Revenue Up 20% This Year

This article from Bloomberg may be of interest to subscribers. Here is a section:

Deutsche Bank AG​​​ said investment banking revenue has risen about 20% so far this year, as the market volatility that spurred gains during the height of the pandemic endured into early 2021.

Chief Transformation Officer Fabrizio Campelli gave the outlook for the German lender’s largest revenue contributor at an online event hosted by Morgan Stanley on Thursday, saying also the firm has continued to win market share in investment banking. He didn’t give further details.

Germany’s largest lender earlier flagged a “good start” to 2021, signaling that trading returns are helping to offset a weak economy. Credit Suisse Group AG and Societe Generale SA each flagged strong investment banking momentum recently, with the Swiss lender seeing revenue up 50% from last year.

Eoin Treacy's view

It’s not so long ago that investors feared Deutsche Bank would go bust or need to be nationalised. The return to profitability in trading and the steepening US yield curve is a tailwind for many investment banks. Banks are highly cyclical stocks that thrive on liquidity provision during steep yield curve phases.

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