Barclays and Deutsche Bank, both in the midst of overhauling their investment-banking operations, are facing an even tougher slog to boost profitability as market turbulence threatens to undermine revenue.
Bloomberg News reports that Barclays said Thursday it’s accelerating a plan to focus on 'core strengths and running the business for returns', while shutting offices in nine countries. Deutsche Bank said on Wednesday that revenue dropped about 16% in the fourth quarter from a year earlier, driven by its securities unit, Europe’s largest.
The volatility that affected trading at the end of last year carried into 2016 as doubts about growth in China persisted and the selloff in crude oil deepened. Europe’s biggest investment banks, which saw profitability shrink as regulators tightened capital standards, now face increased pressure on revenue.
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