Deutsche Bank AG expects trading revenue to decline this quarter as interest rates near their peak and the economy is likely to enter a recession, Chief Financial Officer James von Moltke said Thursday.
Revenue from fixed income trading will drop 15% to 20% compared with the bumper quarter a year earlier, when it rose more than 30%, von Moltke said at an investor conference hosted by Goldman Sachs Group Inc. in Paris. Analysts currently expect a decline of about 12%.
The German lender joins Wall Street firms in warning of a significant trading slowdown. JPMorgan Chase & Co. expects revenue from investment banking and trading to each decline 15% from a year ago, and Goldman Sachs has warned of a slump in trading that could exceed 25%. Bank of America Corp. expects its traders to be roughly flat.
