Deutsche Bank Q2 FX Revenues Flat Despite “Significant” Brexit Boost

The Global Markets division of Deutsche Bank has been one of the worst performing segments of the company’s business in the second quarter of 2016. Germany’s largest lender has continued reporting quarter after quarter of material declines in revenues and profits with the latest figures revealing that the bank’s net income was €20 million, compared to €818 million a year ago.

The foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term revenues of Deutsche Bank were flat when compared to a relatively strong second quarter a year ago. The company does not provide a numeric breakdown of its foreign exchange business operational metrics.

Looking at the global markets division, the revenues of the company declined by 27 per cent to €2.42 billion, while net income was down a whopping 97 per cent to €28 million. The decline has been largely attributed to “lower client activity impacted by economic and political macro uncertainty” and the Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term referendum.

Another factor has been the implementation of Deutsche Bank’s Strategy 2020, which aims to de-risk the company’s exposure and rationalize its footprint.

Deutsche Bank has highlighted “significant” client activity around the UK’s referendum on EU membership, which might well have been the main reason why the FX business of the company has remained flat year-on-year.

Commenting on the company's results in the second quarter the CEO of Deutsche, John Cryan, said: “While our results show that we are undergoing a sustained restructuring, we are satisfied with the progress we are making.”

“We have continued to de-risk our balance sheet, to invest in our processes and to modernise our infrastructure. However, if the current weak economic environment persists, we will need to be yet more ambitious in the timing and intensity of our restructuring,” he elaborated.