Saturday 16 December 2017

Brexit boost for Barclays and Deutsche Bank units

Barclays ceo Jes Staley said his firm's investment bank had picked up market share and was ready to stop shedding jobs. Photo: PA
Barclays ceo Jes Staley said his firm's investment bank had picked up market share and was ready to stop shedding jobs. Photo: PA

Ambereen Choudhury and Donal Griffin

THE haemorrhaging has paused at the debt-trading desks of Europe's biggest investment banks.

Barclays and Deutsche Bank reported year-over-year jumps in fixed-income trading revenue that topped analyst estimates and helped boost third-quarter profit at both firms.

The two banks' share of revenue from that business among the seven largest global firms increased slightly, after it dropped below 20pc in the second quarter for the first time since 2013, according to data from Bloomberg Intelligence.

Barclays ceo Jes Staley said his firm's investment bank had picked up market share and was ready to stop shedding jobs.

Deutsche Bank ceo John Cryan said revenue from its trading desks climbed when a drop was predicted.

"They both did very well in fixed income," Christopher Wheeler, a bank analyst at Atlantic Equities, said. He said the most important task for Mr Cryan "as he rebuilds his business is to make sure he doesn't lose his revenue streams. These numbers show that he's holding on to them".

Revenue from Barclays credit and macro business, which houses the rates and foreign exchange business, surged 40pc to £947m (€1.06bn) in the third quarter, the British bank said in a statement yesterday.

Deutsche Bank said its debt sales and trading revenue for the same period climbed 14pc to €2.07bn, driven by credit and rates at its global markets arm.

Bond trading has been fuelled by the unexpected UK vote to leave the EU, disparate views on the direction of interest rates, and an overhaul in money-market regulations.

The many factors that contributed last quarter led some analysts to question whether banks will be able to replicate the results in coming months. (Bloomberg)

Irish Independent

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