As Deutsche Bank warns on bonuses, traders are leaving
If you thought this year's Deutsche Bank bonuses might be strong, then think again. Speaking today at Davos, Deutsche Bank CFO James Von Moltke intimated that bonuses might not be brilliant for 2023 after a "difficult year." Deutsche Bank's bonuses will "reflect performance," added Von Moltke.
In some areas of Deutsche's investment bank, performance has not been good.
Deutsche Bank doesn't report its fourth quarter results until February 1st. In the first nine months of 2023, its difficult areas included M&A, where revenues nearly halved and fixed income trading, where revenues fell 13% year-on-year. Deutsche said Q3 fixed income trading revenues were lower across rates, FX and emerging markets compared to a strong previous year.
Slowing revenues in rates trading might be due to the market, but they could also be related to the departure of various Deutsche Bank rates traders. The exits last year included Kilian Frensch, who's gone to Nomura, Eren Ozgur, who's gone to hedge fund Alphadyne Asset Management, Josh Hooker, now at BlueCrest, and Daryl Li, at BlueCrest with Hooker. They were seemingly precipitated by the departure of head of rates trading Guy Winkworth, who went to Barclays in June.
Deutsche's rates exits are, however, continuing. With only a few months before bonuses, Alessandro Iannelli, an inflation trader at Deutsche Bank, has just resurfaced at NatWest Markets in London.
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