Investment banking surge helps break Deutsche Bank’s losing streak

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Germany's biggest bank posts its first profit since 2014, surprising those who expected a loss

Frankfurt — Deutsche Bank eked out a small profit in 2020, an important milestone for CEO Christian Sewing after five years of losses, as an investment banking earnings surge offset a weaker showing in its other businesses.

Sewing was promoted to CEO in 2018 to turn Deutsche around after a series of embarrassing and costly regulatory failings, including over money laundering. This boosted its investment bank, whose revenue rose 32% to €9.28bn in 2020, and by 28% in its key fixed-income and currency sales and trading business.

Sewing, in announcing 18,000 job cuts and the closure of its global equities business in a major revamp announced in 2019, said the investment bank should contribute only 30% of core revenues. In 2020 it accounted for close to 40% of core revenue.

 

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