European investment banks will probably report a drop in third-quarter revenue after turmoil in Asia undermined bond and equity deals, driving down the fee pool to its smallest since 2012, Deutsche Bank said.
'Unfortunately, September was a difficult month, with the lead indicators all pointing toward a tough third-quarter earnings season for investment banks', Matt Spick, an analyst at Deutsche Bank in London, said in a note dated October 1.
'We expect to see particular weakness from Asia-Pacific and from the equities and carry fixed-income, currencies and commodities businesses'.
Bloomberg News reports that global fees probably fell 20% to $12.4bn in the three months through September from a year earlier, making it the weakest period since the second quarter of 2012, Deutsche Bank said.
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