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by Tyler Durden
Wed, 10/30/2019 - 08:23

Deutsche Bank stock tumbled - again - after the bank reported its steepest drop since CEO Christian Sewing’s sweeping revamp in early July as Q3 fixed income trading results badly trailed its Wall Street rivals in the latest sign of the steep hurdles Germany’s biggest lender faces in its efforts to turn round the fortunes of its investment bank.

Revenue in the bank's once iconic fixed income group — by far the biggest remaining unit of Deutsche’s downsized investment bank — tumbled 13% year-on-year to €1.23bn.

Deutsche blamed the decline in its FICC group on low market volatility in foreign exchange markets. It also pointed to “business restructuring and challenging market conditions” in its rates unit, which handles sovereign bonds and other related products, and emerging markets debt which triggered “some risk management losses”.

The bank's new strategy - which now also includes a "bad bank" to house its troubled assets - marks the biggest cutback to the investment bank since Deutsche Bank built up the business in the 1990s. While top shareholders and regulators have signaled support, analysts have warned of execution risks. The bank already had to walk back a revenue target as the slowing economy made it unlikely that interest rates will rise soon.

The punchline: the investment bank’s overall pre-tax profit tumbled 73% to €64 million; due to a change in its financial reporting structure and the restructuring, analysts could not even reach a consensus on what the number should be prior to the quarterly results, so it wasn't clear if this was a beat or a miss.
https://www.zerohedge.com/markets/deutsche-tumbles-after-ibanking-profit-plunges-73-bad-bank-posts-negatve-revenue