Deutsche Bank expects trading revenues to decline between 15% and 20% in the current quarter compared to the outstanding second quarter a year earlier. It is the first major European investment bank to predict a significant slowdown.
This was stated by CFO James von Moltke, disappointing analysts who expected a 12% decline.
Shares of the German bank extended losses after the comments, dropping as much as 2.4% in Frankfurt.
Deutsche Bank thus joins Wall Street banks in signaling a weakening in trading activity as interest rates near their peak and the economy could enter a recession. JPMorgan Chase expects revenues from investment banking and trading to both fall 15% year-over-year, while Goldman Sachs warned that declines in trading could exceed 25%.