Europe's bank trading clean-up has further to go
BCS•Barclays and Deutsche Bank are seeking to improve profitability or reduce exposure to volatile businesses, but progress is uneven. Deutsche Bank’s third-quarter revenue rose 4% year on year, while Barclays’ income increased 3% to £7.4 billion.
1. Uneven progress
Shares in investment banking-heavy Barclays and Deutsche Bank are lagging peers as both seek to boost profitability or lighten the load of volatile businesses. Deutsche Bank’s third-quarter investment bank revenue fell 2% to €2.92 billion, while corporate bank and private bank revenue rose 9% and 8%, respectively. Barclays’ investment bank income rose 1%, despite a 19% decline in its fixed-income and currencies markets business.
