Deutsche Bank AG's revenue from fixed-income trading declined 3% to €2.39 billion in the third quarter, meeting analyst estimates, according to a statement Wednesday. Net income rose 2% to €1.8 billion, while pretax profit of €2.63 billion exceeded estimates.
Chief Executive Officer Christian Sewing said the bank was pleased to report its third consecutive record quarterly profit. He said the performance positions Deutsche Bank to meet its 2026 objectives and reinforces confidence in upside to its mid-term profitability target. Sewing has pledged to boost return on tangible equity to more than 13% in 2028 as he seeks to close a persistent valuation gap with many European peers. Continued growth in the fixed-income unit, especially in the Americas, is a major part of that plan.
The German lender slightly outperformed major Wall Street banks, which saw fixed-income trading slump 5% on average in the third quarter, according to Bloomberg Intelligence. Chief Financial Officer Raja Akram said on Bloomberg TV that the bank is matching last year's record fourth quarter so far, with credit trading slower and rates performing reasonably well.
Bond traders face a tough backdrop, with elevated interest rates weighing on debt issuance, uncertainty over the Federal Reserve's next moves, concern about France's finances, geopolitical tensions, stubborn inflation and elevated oil prices. Deutsche Bank also flagged an idiosyncratic event in Asia as part of its credit provisions in the corporate bank, which exceeded analysts' revenue expectations.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing