Deutsche Bank Pledged to Arrest Decline in Revenue in 2019, Fiscal 2018 Revenue 4.3% Lower at €25.32 billion

Karthik Subramanian

Karthik Subramanian has been a professional trader and fund manager over the last 18 years. He is basically a software developer who made the transition to financial domain around 18 years back as the attractiveness of the financial markets proved too much for him. He lives in Chennai in India along with his wife and son. He began his career as a software developer in 1999 and then gradually moved into the financial industry as he began trading stocks in his pastime. He then moved into the financial markets full time and then shifted his focus to the FX markets due to the liquid nature of these markets. Since then, he has been trading FX diligently and his favourite pair are the EURUSD and EURJPY. Over the last couple of years, he has found blockchain to be of high interest and considering his background in software and finance, he has since assembled a team of highly talented developers who have since worked on a variety of projects like crypto exchanges and blockchain architecturing. Now, he balances his time between trading and commenting on both the FX and crypto markets. He has worked with many publications including FX Street and Finance Magnates, which has helped him gain experience and also recognition across the industry. He loves to write and this passion has helped him to reach out across the FX and crypto industry. Right now, he works on his pet projects in the FX and crypto industry and spends his time writing and managing his blockchain team and helping it to reach higher.

Societe Generale

Deutsche Bank Pledged to Arrest Decline in Revenue in 2019, Fiscal 2018 Revenue 4.3% Lower at €25.32 billion

March 23, 2019
Deutsche Bank
Deutsche Bank

German multinational investment and financial services company, Deutsche Bank published its annual report for fiscal 2018, that ended on 31st Dec 2018. 

During the period, the bank showed a weak performance achieving revenue of €25.32 billion, which is 4.3 per cent lower compared to that of 2017. Taking a look at the report, the bank has pledged to reverse the declining revenue in 2019 assuming solid economic growth during the period. 

Further, the bank is also working to achieve a 4 per cent return on tangible equity, but that is fully linked to market conditions. The bank has predicted the same in the previous year, but the market conditions didn’t support the growth.

Christian Sewing, the CEO of Deutsche Bank said:

“Market conditions have improved as compared to those experienced in the fourth quarter of 2018. However, they are somewhat weaker than we had anticipated. We aim to achieve our other key performance indicators over time, consistent with becoming a simpler and safer bank.”

According to reports from Bloomberg, many analysts are skeptical on the forecast estimate by the bank and have a general consensus that the bank will report a decline in revenue and return on tangible equity of 1.2 per cent in 2019. 

Deutsche Bank is not the only case, several other banks such as Societe Generale has previously revised its guidance with lower profits for its markets business, and also executive from both Citigroup and JPMorgan Chase & Co. told that they are expecting a weaker trading revenue compared to a year ago. 

The report also mentions about Deutsche Bank and Commerzbank of a possible merger, and the merging of two rival banks will be a very positive move. CEO Sewing believes that the combined entity would improve the cost of funding, but job cuts coming out of the merger will be the pain points ahead. Together, the bank would employ close to 140,000 employees worldwide. 

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