DB - Deutsche Bank sees Q2 FICC down as much as 20% vs strong year-ago results

2023-06-15 15:07:33 ET

Deutsche Bank ( NYSE: DB ) is seeing its Q2 FICC trading falling ~15%-20% from a year ago. Compared with an unusually strong Q1 and Q2 in 2022, "we're naturally going to have a step back," said Chief Financial Officer Jacob von Moltke on Thursday.

In Deutsche's ( DB ) corporate finance advice and underwriting business, "we think we've started to find the floor, which is encouraging," he said, pointing to a sequential stabilization from Q4 2022 to Q1 2023.

He sees Origination & Advisory as flat to up in Q2 vs. a year ago. The investment bank is expected to be down 15% or a little worse Y/Y, von Moltke added.

Its global peers have been relating similar slumps in their FICC operations. Citi's ( C ) chief financial officer, Mark Mason, said on Wednesday its markets revenue has dropped ~20% Q2-to-date from a year ago.

Deutsche Bank's ( DB ) shift to more stable businesses, chiefly its private bank, corporate bank and asset management unit, and away from investment banking bodes well for the company's sales trajectory, von Moltke said.

"Our focus on costs remains very intense," as part of the bank's plan to improve profitability, he added.

Deutsche Bank ( DB ) stock fell 1.2% in Thursday trading. Note that the European Central Bank increased its key rates by another 25 basis points, bringing its main refinancing operations rate to 4.00%.

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