Deutsche Bank, which runs Europe’s biggest investment bank, said it expects the industry’s revenue to decline this year as clients consider pulling back from trading some fixed-income securities and refrain from doing deals.
Bloomberg News reports that securities firms will see debt trading revenue fall “slightly” from a year earlier as “an increase in macro revenues due to monetary policy divergence will be more than offset by lower credit revenues,” Deutsche Bank said in a statement from Frankfurt on Friday. Income from equity trading will probably be “moderately lower” in 2016, while corporate finance industry fee pools will fall due to a decline in deals to advise on, it said.
“The beginning of 2016 has seen volatility in the world’s financial markets,” co-Chief Executive Officers John Cryan and Juergen Fitschen said in a note to shareholders. “This has impacted the banking sector. The seasonally strong first quarter might turn out to be challenging for the sector overall. Deutsche Bank is no exception to this.”
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