Deutsche Bank's securities unit reports Q4 loss on revenue slump

Frankfurt

DEUTSCHE Bank's securities unit posted a loss in the fourth quarter with each of the businesses reporting a slump in revenue as co-chief executive officer John Cryan scales back trading activities to bolster returns. The loss of 1.15 billion euros (S$1.8 billion) in the period compares with a pretax profit of 323 million euros a year earlier, the company said on Thursday. Revenue at the corporate banking and securities unit slumped 30 per cent to 2.1 billion euros, with a negative return on equity.

Mr Cryan, 55, who took over as co-chief executive from Anshu Jain in July, is shrinking the debt trading empire built by his predecessor as part of a pledge to bolster capital levels and boost profitability. While the last three months of the year are typically the weakest for investment banks, his task has become even harder as the market upheaval that hit trading at the end of last year spilled into 2016 amid cooling emerging market growth and a slump in oil prices.