Deutsche Bank securities services revenue sees Q1 decline
01 May 2020 Frankfurt
Image: Deutsche Bank
Deutsche Bank’s quarterly earnings report revealed a decline in its securities services revenues for Q1 2020.
The decline in this segment reflects the absence of a gain in the prior period, according to Deutsche Bank.
Elsewhere, trust and agency services revenues were also lower, which the bank said was driven by the impact of US interest rate cuts and lower clients activity.
The report also showed that trade finance and lending revenues were also essentially flat, with solid lending volumes and wider spreads at the end of the quarter.
Additionally, cash management revenues were also flat, as the impact of reductions in interest rates in the US and the ongoing negative rates in Europe were partially offset by deposit
repricing and European Central Bank deposit tiering.
Deutsche Bank’s global transaction banking produced revenues of €968 million, showing a 2 percent decline compared to the same period last year.
Despite COVID-19 challenges, the bank revealed that it had a profitable Q1 2020 driven by revenue growth in its core business.
Capital remained substantially above regulatory minimum levels, while credit provisions grew from low levels in the prior year, which Deutsche Bank said reflects a “deteriorating macro-economic environment impacted by COVID-19”.
Commenting on the Q1 results, the bank’s CEO Christian Sewing, said: “In the current crisis, we have shown robust numbers and demonstrated strong performance in support of our clients across all core businesses. Conservative balance sheet management enables us to
navigate the current environment from a position of strength as the leading bank in Europe's strongest economy.”
“I want to say a huge thank you to our employees, who have shown outstanding dedication and flexibility. I am proud of the way we have been there for our clients, our communities and for each other,” Sewing added.
The decline in this segment reflects the absence of a gain in the prior period, according to Deutsche Bank.
Elsewhere, trust and agency services revenues were also lower, which the bank said was driven by the impact of US interest rate cuts and lower clients activity.
The report also showed that trade finance and lending revenues were also essentially flat, with solid lending volumes and wider spreads at the end of the quarter.
Additionally, cash management revenues were also flat, as the impact of reductions in interest rates in the US and the ongoing negative rates in Europe were partially offset by deposit
repricing and European Central Bank deposit tiering.
Deutsche Bank’s global transaction banking produced revenues of €968 million, showing a 2 percent decline compared to the same period last year.
Despite COVID-19 challenges, the bank revealed that it had a profitable Q1 2020 driven by revenue growth in its core business.
Capital remained substantially above regulatory minimum levels, while credit provisions grew from low levels in the prior year, which Deutsche Bank said reflects a “deteriorating macro-economic environment impacted by COVID-19”.
Commenting on the Q1 results, the bank’s CEO Christian Sewing, said: “In the current crisis, we have shown robust numbers and demonstrated strong performance in support of our clients across all core businesses. Conservative balance sheet management enables us to
navigate the current environment from a position of strength as the leading bank in Europe's strongest economy.”
“I want to say a huge thank you to our employees, who have shown outstanding dedication and flexibility. I am proud of the way we have been there for our clients, our communities and for each other,” Sewing added.
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