Deutsche Bank Boosts Securities Unit Outlook on Trading Boom

Debt trading jumped 47% in the third quarter, beating peers
But dependence on market rally weighs on Deutsche Bank shares

Deutsche Bank set aside 273 million euros for bad loans in the quarter, slightly less than a previous guidance of 300 million euros.
Photographer: Alex Kraus/Bloomberg

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By Steven Arons

October 28, 2020 at 2:04 AM EDT

Updated on

October 28, 2020 at 5:05 AM EDT

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Deutsche Bank AG signaled the trading boom that helped it beat Wall Street rivals will continue through the end of the year, boosting investment banking revenue and compensating for headwinds at its lending businesses.

Income from trading fixed-income securities and currencies rose 47%, beating all but one of the large investment banks so far and snapping a long streak of market share losses. That propelled Deutsche Bank to a 182 million-euro ($214 million) profit in the third quarter, compared with a loss that analysts had predicted.