Deutsche says its traders are keeping pace with Wall Street

Bloomberg

Deutsche Bank AG said its fixed-income traders are on track to match or beat the performance of their Wall Street peers, racking up a fourth straight quarter of revenue gains as a market rally that started late last year continues.
Third-quarter trading revenue is “in line with or better” than the guidance for 12% growth that Wall Street peers had given on average, investor relations head James Rivett said on a recent call with analysts, according to a transcript. That performance excludes the impact from debt valuation
adjustments and Tradeweb, which reduced revenue in the third quarter of last year by 99 million euros ($116 million).
“We have consistently said that we can see positive momentum building in our core investment banking client
franchises as our refocused strategy begins to pay off,”
Rivett said.
Like its Wall Street rivals, Deutsche Bank’s trading business has been riding a trading boom that set in late last year and further intensified during the market volatility caused by the pandemic. The windfall has helped Chief Executive Officer Christian Sewing stick with his revenue targets even as other units failed to grow as quickly as anticipated in the turnaround plan he announced last year.
Deutsche Bank recently reaffirmed its 2022 revenue target, citing higher-than-expected revenue growth in its investment bank as a key reason. Two other core divisions — the retail and the transaction bank — have been growing more slowly than stated in Sewing’s plan.
“The investment bank has driven a robust start, with the environment helping,” Bloomberg Intelligence analyst Alison Williams wrote in a note. “Sustained momentum in core businesses will be the critical measure.”
Sewing wants to increase revenue to 24.5 billion euros in 2022. Analysts so far are skeptical, with the consensus forecast compiled by Bloomberg anticipating revenue of 22.3 billion euros.