Why Deutsche Bank Shares Are Trading Lower Today

Deutsche Bank DB shares are trading lower by over 3% after the CFO reportedly estimated a 15%-20% decline in Q2 2023 fixed-income trading revenue at a conference Paris hosted by Goldman Sachs yesterday.

The CFO Jacob von Moltke stated that Q2 fixed income trading revenue is facing a tough comparison versus an unusually strong Q1 and Q2 2022.

Also, he expects investment bank division revenue to decline by 15% or a little worse Y/Y in Q2.

Also Read: Deutsche Bank Streamlines Mortgage Business: Report

"We are seeing the trail-off in the macro, but actually still quite encouraging activity despite all the things we been through," von Molke said.

On the other hand, Moltke sees encouraging stability in its corporate finance advice and underwriting business, indicating improved Q1 2023 vs. Q4 2022. 

The CFO expects Origination & Advisory business to be flat to up Y/Y in Q2 2023.

Moltke cited its strong focus on cost reduction to boost profitability and sees the bank's shift to more stable businesses (such as asset management and private and corporate banking) from investment banking business to bode well for sales growth. 

Price Action: DB shares are down by 2.45% at $10.35 premarket on the last check Friday.