Securities Trading

Deutsche Bank's Weak Core

trading room deutsche bank
Deutsche Bank's biggest bread-and-butter business -- securities trading -- is weak and losing money, according to new figures published by the bank. Some investors are starting to question whether more drastic cutbacks may be needed at Germany's largest financial institution.
  • Why it matters

    Why it matters

    New financial figures released by Deutsche Bank show its core securities trading business is failing, which could raise pressure on CEO John Cryan to speed up cuts and restructuring at the bank.

  • Facts

    Facts

    • Deutsche Bank released new financial figures giving a more detailed look into the profitability of specific businesses.
    • The figures showed that securities trading, usually a big and reliable source of income, lost €1.98 billion before taxes last year.
    • Some investors are calling on CEO John Cryan to cut deeper and faster at Deutsche Bank to revive the institution’s flagging share price.
  • Audio

    Audio

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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.

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