Deutsche Bank’s Traders See 16% Revenue Rise to Beat Wall Street

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(Bloomberg) — Deutsche Bank AG’s revenue from fixed-income trading jumped in the second quarter as the unit outperformed most of its US peers. 

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The metric rose 16% over last year’s period to hit €2.6 billion ($3 billion) “driven by rates and credit,” according to a statement Wednesday. That compared with analyst expectations for €2.4 billion.

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The increase exceeded the average across the big Wall Street banks, which was 13%, according to Bloomberg Intelligence. Deutsche Bank said the result was a record for the second quarter, helping to push profit in the period to €1.9 billion.

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Germany’s largest bank also announced a new share buyback of €500 million and confirmed its full-year revenue outlook while saying it’s “on track to deliver strong operating performance” this year. 

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“The rapid evolution of AI gives us added scope to deliver value to clients and make additional cost savings, while positive trends are becoming clearer across our policy and regulatory landscape,” Chief Executive Officer Christian Sewing said in the release. “These developments, together with our record performance in 2026 to date, reinforce our confidence that we have upside to our 2028 targets.”

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Sewing has pledged to boost profitability and investor payouts as he seeks to close a persistent valuation gap between Deutsche Bank and many of its European peers. Continuing growth across the fixed-income unit, especially in the Americas, is a major part of that plan. 

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While the economic impact from higher energy prices on the back of the Iran war could complicate Sewing’s task, he has said he expects to benefit at some point from major political reforms in Germany including changes to the pension system and higher defense spending. He has become an influential voice in Berlin and has shared his views on several key projects pursued by the government, Bloomberg has reported. 

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Deutsche Bank’s competition in the US reported booming results in the second quarter driven by trading in equities, pushing the country’s six biggest banks to $100 billion in combined first-half profit. Sewing shuttered that business several years ago as part of a major restructuring.

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Shares in BNP Paribas SA and Barclays Plc declined after they reported second-quarter results that didn’t quite measure up to Wall Street, even though they each posted strong growth in equities trading. 

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Sewing has shied away from major acquisitions at a time when many big European Union banks are chasing deals. UniCredit SpA is seeking to take over Germany’s Commerzbank AG, Banco Santander SA has recently bought Webster in the US and TSB in the UK, and BNP Paribas has acquired Axa Investment Managers.

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