FX revenue significantly higher, yet Deutsche Bank reports lower Q4 revenues due to “challenging markets”


Deutsche Bank released preliminary 2013 full year figures today, together with details of 4th quarter figures. Net revenues in the 4th quarter were EUR 6.6 billion, 16% below the prior year period. The decline largely reflecting weaker results in Corporate Banking & Securities (CB&S) and a smaller decrease in Global Transaction Banking (GTB) revenues, and the impact of regulatory fines (some EUR1.3bln).

The Corporate Banking & Securities (CB&S) division are home to the FX and fixed income businesses. Reading through the accompanying investor presentation, it seems that within Debt Sales & Trading, FX was the only group that delivered ‘significantly higher revenue’ (albeit after a difficult 3rd quarter) – although they don’t break the figures down.

Deutsche has been global #1 in FX for the past 9 years according to the latest EuroMoney 2013 FX Survey, although their market share has continued for fall over that period, so will be interesting to see if Deutsche manage to retain their #1 spot in the 2014 FX survey out in May.

  • 2013 Debt Sales & Trading 25% lower reflecting challenging market environment

— FX revenues significantly higher qoq reflecting a difficult 3rd quarter

— Core Rates revenues significantly lower qoq driven by lower client activity due to ongoing market uncertainty
— Credit Solutions revenues significantly lower qoq reflecting seasonal slowdown in activity
— Commodities revenues significantly lower qoq due to unfavourable trading conditions

  • 2013 Equity Sales & Trading 20% higher driven by strong performance across all products

— Cash Equity revenues higher qoq supported by good performance in North America
— Equity Derivatives revenues significantly weaker qoq following a strong 3Q2013 notably in Europe
— Prime Brokerage revenues in-line qoq reflecting stable client balances

Full investor presentation here

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