Deutsche Bank’s fixed income division’s decade-high revenues supported its investment bank’s profit in 2022, despite a 62% decline in dealmaking fees – a larger decline than its Wall Street competitors.
Last year, the fixed income trading section of the German bank earned €8.9bn, a 26% increase and its highest total in ten years, but somewhat below analyst projections for the period. The overall pre-tax earnings of Deutsche’s investment bank decreased by 6%, while dealmaking fees of €1 billion decreased by 62% compared to the previous year.
In 2022, Deutsche’s fixed income segment accounted for 89% of total investment bank revenue, up from 73% in 2021, when transaction fees reached record highs. The 26% increase lagged behind many of its Wall Street competitors for the year, but the 62% decline in its origination and advisory business was greater than the 50% decline reported by Wall Street banks including JPMorgan and Goldman Sachs as well as UBS, which is the only European bank to release its full-year results thus far and saw fees fall by half.
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