Deutsche Bank Q2 FX Revenues Flat Despite “Significant” Brexit Boost

Deutsche Bank has reported revenues of its Global Markets division crashing 27%, net income down 97%.

The Global Markets division of Deutsche Bank has been one of the worst performing segments of the company’s business in the second quarter of 2016. Germany’s largest lender has continued reporting quarter after quarter of material declines in revenues and profits with the latest figures revealing that the bank’s net income was €20 million, compared to €818 million a year ago.

The foreign exchange revenues of Deutsche Bank were flat when compared to a relatively strong second quarter a year ago. The company does not provide a numeric breakdown of its foreign exchange business operational metrics.

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Looking at the global markets division, the revenues of the company declined by 27 per cent to €2.42 billion, while net income was down a whopping 97 per cent to €28 million. The decline has been largely attributed to “lower client activity impacted by economic and political macro uncertainty” and the Brexit referendum.

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Another factor has been the implementation of Deutsche Bank’s Strategy 2020, which aims to de-risk the company’s exposure and rationalize its footprint.

Deutsche Bank has highlighted “significant” client activity around the UK’s referendum on EU membership, which might well have been the main reason why the FX business of the company has remained flat year-on-year.

Commenting on the company’s results in the second quarter the CEO of Deutsche, John Cryan, said: “While our results show that we are undergoing a sustained restructuring, we are satisfied with the progress we are making.”

“We have continued to de-risk our balance sheet, to invest in our processes and to modernise our infrastructure. However, if the current weak economic environment persists, we will need to be yet more ambitious in the timing and intensity of our restructuring,” he elaborated.

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