Deutsche Bank's stock rises as CEO says fixed-income unit is winning market share

By Steve Goldstein

Corporate clients want an alternative to U.S. banks, Christian Sewing says

Deutsche Bank shares rose as much as 5% after the bank's chief executive said its fixed-income division will see revenue growth this quarter.

Speaking at Morgan Stanley's European Financials Conference in London Tuesday, Deutsche Bank (XE:DBK) (DB) CEO Christian Sewing said bank's fixed-income, currencies and commodities division will have revenue that is "slightly up" as it wins market share in Europe.

Sewing said S&P's December upgrade of Deutsche Bank's credit to an A rating allowed the bank to bring on more clients, adding that the division has outperformed rivals in 11 of the last 14 quarters.

Sewing said geopolitical turmoil has helped the bank.

"It may sound odd, but the geopolitical situation which we have around the world is actually a key reason why corporate clients are needing advice in building up a more diversified network, thinking about risk management tools. So what they need is a bank which is global. They would like to have, in particular in corporate banking, an alternative to the U.S. banks," he said.

Sewing said the financial targets Deutsche Bank outlined six weeks ago are on track.

He said that provisions for credit losses may be at the upper end of the bank's range of 25 to 30 basis points, but he was confident they wouldn't exceed that level. "We have asset classes like commercial real estate which obviously face some challenges," he said.

He said there was no deterioration in commercial real estate, but that there wasn't a "rally" there, either.

-Steve Goldstein

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03-12-24 1057ET

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