Deutsche Bank in January shocked investors when it reported a record €6.8 billion ($7.8 billion) loss for 2015. But only this week did the bank crunch the figures to reveal a new, unsettling fact – securities trading, usually one of its most reliable sources of income, is struggling and losing lots of money.
The weak core was revealed by the release of new financial data that reflect one of the major restructuring moves made so far by its new designated chief executive, John Cryan. Mr. Cryan, a former UBS banker, split Deutsche Bank’s investment banking business into two — a securities trading business called Global Markets, and a consulting business, including trade finance and transactions, called Corporate and Investment Banking.
The new details show that securities trading is losing a lot of money. In three of four quarters in 2015, the business generated losses. By the end of 2015, it had posted a cumulative pretax loss of €1.98 billion.