Deutsche Bank's Chief Financial Officer, James von Moltke, discussed the bank's earnings and performance, noting a strong start to the second quarter for its fixed income and currencies (FICC) business, which saw an 11% increase in revenue year-over-year to €2.28 billion for the securities unit. This performance exceeded most analyst estimates. The origination and advisory business also contributed positively to the good start of the quarter, providing confidence for the second half of the year.
Von Moltke highlighted that the momentum observed in the FICC business and origination and advisory is continuing into July, indicating sustained good activity and performance despite earlier volatility in specific areas like rates trading at the end of the first quarter. He emphasized that credit and FX continued to outperform expectations.
Looking back to April, the fixed income and currencies trading business had a "constructive" start to Q2 after a challenging March due to the US war on Iran, which put pressure on the rates trading division. However, overall client engagement and momentum remained strong across investment banking activities, with financing origination and advisory for corporate finance products showing significant growth, up 54% year-over-year.
The bank is encouraged by the overall revenue momentum and the underlying performance across its businesses. Von Moltke expressed satisfaction with the results and the bank's ability to navigate the market environment, reinforcing confidence in meeting revenue targets and delivering against ratio targets. He also noted that macro products have been strong all year, with complex quarter performance for macro at 19% and credit trading also showing very strong results.
