Deutsche Bank’s first quarter net income plummeted 58% this year compared to last year, as it becomes the latest investment bank to report a tough first quarter.
The bank’s overall net income dropped from €559 million in the first quarter last year, to €236 million in Q1 this year.
John Cryan, chief executive officer at Deutsche Bank said global economic uncertainty in the first quarter “led to a decline in client activity in capital markets and our revenues fell from the prior year, most notably in our trading and corporate finance businesses.”
The investment bank’s global markets business suffered a 23% drop in net revenues in the first quarter this year compared to the same period last year.
Deutsche Bank said the decline in its global markets revenues “reflected a challenging market environment, lower client activity and the impact of implementing strategic decisions.”
The corporate and investment banking division fell from €2.1 billion in the first quarter last year, to €1.8 billion in Q1 this year.
This decline was down to “weak market conditions” and the “fee environment in both equity capital markets and debt capital markets,” the report said.
Net revenues across Deutsche Bank’s asset management business were down 12% year on year, from €840 million in Q1 2015 to €736 million in Q1 this year.
The first quarter report explained the revenues dropped due to “challenging capital market conditions.
“This reduced client activity and significantly impacted revenues in market-related businesses, global markets, corporate finance and Deutsche Bank Asset Management.”