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Deutsche Bank Gains Fixed-Income Share, Closing Gap With Leaders
By Julia Verlaine Sep 25, 2014 10:00 AM GMT+0200
Deutsche Bank AG’s fixed-income, currencies and commodities business closed the revenue gap with Citigroup Inc. (C) and JPMorgan Chase & Co. (JPM) in the first half, according to analytics firm Coalition Ltd.
The firm was ranked global first equal with the two New York-based banks in the period, up from third place in the year earlier period, according to London-based Coalition. That was as industry revenue from FICC declined by 22 percent to $5.9 billion, the firm said.
The business has shrunk as regulators impose stiffer capital requirements and interest rates at record lows crimp volatility. Frankfurt-based Deutsche Bank has sought to expand its FICC operation as competitors such as Barclays Plc (BARC) and Switzerland’s UBS AG (UBSN) shrink theirs, betting that revenue in the industry will revive in time.
“Unlike other players, Deutsche doesn’t really have the choice to ‘shrink its way to greatness’,” said Omar Fall, a banking analyst at Jefferies International Ltd. in London. “It’s not UBS, which can rely on its highly profitable wealth-management franchise.”
To contact the reporter on this story: Julia Verlaine in London at jverlaine2@bloomberg.net
To contact the editors responsible for this story: Simone Meier at smeier@bloomberg.net Edward Evans, Elisa Martinuzzi
www.bloomberg.com/news//2014-09-25/...ng-gap-with-leaders.html