Deutsche Bank’s rates traders win big bonus

BLOOMBERG

Deutsche Bank AG’s rates traders received some of the biggest increases in bonuses as Germany’s largest bank unveiled compensation details.
The business, which saw revenue jump five-fold last quarter amid rapid increases in central bank interest rates, saw the largest gain in variable compensation within the securities unit, according to people familiar with the matter.
Currency traders and the emerging markets desks also saw rises, albeit smaller ones, while the financing business was roughly flat and the pool for credit traders was cut, the people said, asking for anonymity discussing internal information.
A spokeswoman for Deutsche Bank declined to comment.
Deutsche Bank’s trading unit, led by Ram Nayak, has been a key driver of Chief Executive Officer Christian Sewing turnaround plan, with volatile markets fueling revenue. That has cemented its status as the bank’s biggest source of income by far, contributing a third of the group’s entire revenue last year.
The people familiar with the compensation details declined to say how much exactly bonuses increased, but rates traders across Wall Street saw gains of about 20% for last year, one of them said.
Deutsche Bank has previously said it wants to pay “competitively” and takes bonus levels at other banks into consideration when making its own decision.
Compensation expense at the investment bank rose 8% last year, which includes money set aside for bonuses that are being paid out now.