LONDON — Calm markets make for stressed investment bankers, particularly at Deutsche Bank.
The corporate and investment banking division of Germany’s largest lender posted a 10% slide in revenues in the second quarter to €6.6 billion.
One of the chief culprits was the lack of market shockwaves, according to the bank.
There was “lower client activity resulting from low volatility in the market,” Deutsche Bank said in its interim report.
The point was reinforced by Deutsche Bank CEO John Cryan, who said: “Revenues were not as universally strong as we would have liked, in large measure because of muted client activity in many of the capital markets. As we modernise our bank we are turning our focus onto building profitable growth.”
While both revenue and headcount are falling at the investment bank, pay packages aren’t. Compensation and benefits in its corporate and investment bank amounted to €2.9 billion, down just 1 %. This isn’t great news for the cost-cutters because “the impact of headcount reductions was largely offset by higher accruals for variable compensation,” the bank said.
It wasn’t all bad news. Overall the bank posted net income of €466 million in the second quarter, beating analysts estimates.