Deutsche Bank reports 32% Y/Y jump in FIC revenues for Q2 2022
Deutsche Bank (ETR:DBK) today posted its financial results for the second quarter and first half of 2022, delivering a set of solid results in terms of profitability.
Investment Bank net revenues were €2.6 billion, up 11% year on year. Fixed Income & Currencies (FIC) revenues grew 32% to €2.4 billion, the highest second-quarter FIC revenues for ten years. Net revenues in Rates, Foreign Exchange and Emerging Markets all more than doubled year on year, which more than offset a decline in Credit Trading compared with a strong prior year quarter.
Across all segments, net revenues were €6.6 billion in the second quarter of 2022, up 7% year on year and the highest second-quarter revenues since 2016, despite business exits related to transformation since 2019.
Revenue growth in Deutsche Bank’s core businesses more than offset negative revenues in Corporate & Other which were negative €370 million in the quarter, compared to negative €6 million in the prior year quarter. This development primarily reflected valuation and timing differences on derivatives used to hedge the economic risk of the bank’s balance sheet.
These accounting impacts were driven by market volatility which persisted during the quarter and rising interest rates, partly offset by cross-currency basis effects. On aggregate, negative valuation effects are expected to reverse over time as the underlying instruments approach maturity.
Profit before tax was €1.5 billion for the second quarter of 2022, up 33% year on year, while post-tax profit was up 46% to €1.2 billion.
Liquidity reserves were €244 billion at the end of the second quarter, essentially unchanged from €246 billion at the end of the first quarter, including High Quality Liquid Assets of €207 billion.