Deutsche Bank AG, Europe’s biggest investment bank, plans to expand in fixed-income trading in Europe and the U.S. as the company’s competitors retrench, according to co-Chief Executive Officer Anshu Jain.
The bank plans to reposition in Europe “where the tectonic plate movement is really happening” and in the U.S. “where we see growth as being strong,” Jain said in an interview with Bloomberg Television’s Stephanie Ruhle in New York today.
Investment banks across the globe are weighing how to weather a decline in revenue as clients hold off on trades and costs from lawsuits and regulatory probes eat into capital. Deutsche Bank said this month that it will raise 8 billion euros ($10.9 billion) by selling shares to meet stricter regulatory standards and help grab market share in fixed income.
“We saw a lot of the issues which fixed income is facing, both structural and cyclical, early,” Jain said. “We positioned the bank well for it. I frankly wouldn’t depict what we are doing right now as a pushing in or a leaning in, this is part of the natural cycles of the business.”