What parts of Deutsche Banks business are lagging

The origination and advisory divisionsresponsible for arranging debt and equity deals and advising on mergers and acquisitionsare performing below expectations

What is causing the slowdown in deals

Corporate clients are delaying strategic moves due to uncertainty over US tariffs and broader economic growth prospects Will Deutsche Bank still meet its revenue targets Yesstrong performance in its fixedincome and currency trading operations is expected to offset weakened dealmaking fees keeping overall investment banking revenue on track with last year

Could the soft deal activity become permanent

Sewing believes the slowdown is temporary He describes the drop as postponement not cancellation The volume of pending deals suggests a rebound in Q3

How are investors reacting

The market is watching closely Deutsche Banks diversification into trading retail and corporate lending reassures investors about its adaptability and resilience

What other pressures does Deutsche Bank face

The bank is under pressure to contain costs and improve profitability It may review or exit underperforming units as it refines its longterm strategy

Are other banks seeing the same trend

Yesmajor global banks including Bank of America have also reported weakening dealmaking amid tariffrelated delays and market volatility

Deutsche Bank Deal‑Making Business Disappoints CEO Amid Global Tariff Uncertainty

🔸Published: 12 Jun 2025 01:52 PM

🔸Updated: 12 Jun 2025 01:52 PM

Deutsche Bank reveals that its deal‑making arm is underperforming this quarter due to U.S. tariff uncertainty, though bond trading is expected to offset much of the shortfall.

Deutsche Bank’s chief executive, Christian Sewing, told investors that the bank’s deal‑making operations—covering underwriting, corporate advisory, and M&A—are falling short of expectations for the second quarter. The slowdown is attributed mainly to postponed corporate decisions driven by uncertainty around U.S. tariffs. Still, Sewing stressed these delays are temporary, not cancellations, and expressed confidence in compensating performance via bond and fixed‑income trading.

Deal‑Making Weakness Linked to Tariff Uncertainty

At a leading financial conference in Europe, the CEO acknowledged that the bank’s origination and advisory business is “weaker than initially expected.” Many corporate clients in the U.S. and Europe are pausing strategic decisions—such as new bond issues or merger deals—due to ongoing trade friction and slowing growth concerns. Sewing emphasized that while this drag will affect Q2, the underlying deal pipeline remains robust, with many transactions expected to carry over into the third quarter.

Read More on Procapitas:

Trump Sends Troops to Los Angeles During Immigration Protests – Here's What’s Going On

China Is Rushing to Build Its Own Chip Supply Chain. Why It Matters?

U.S. to Cancel Visas for Chinese Students Tied to CCP or Sensitive Tech Fields

Trading Strength to Cushion the Blow

Deutsche Bank is counting on its well‑performing bond and currency trading division to offset the shortfall. Sewing said the fixed‑income and currencies arm is set to deliver “low single‑digit” growth for the quarter, powered by market volatility and demand for rate‑sensitive instruments. The bank expects total investment banking revenue to remain broadly in line with the same period last year.

Broader Context: Banking Sector Trends

Other major banks are reporting similar slowdowns in deal activity, with Bank of America citing comparable trends in its advisory division. These reflections coincide with a broader slowdown in macroeconomic momentum tied to tariff anxieties, slowing global trade, and uneven GDP performance. While strategic corporate transactions are being deferred, trading desks have thrived on market unpredictability.

Deutsche Bank’s Strategic Roadmap

Despite the softer start, Sewing reaffirmed his commitment to meeting 2025 targets for cost reduction, revenue growth, and profitability. Over the past two years, the bank has invested heavily in expanding corporate banking capabilities, including underwriting and equity capital markets. The CEO believes that once tariff pressures ease, deferred deals will resume.

Deutsche Bank has also balanced its transformation by shifting emphasis toward retail banking and corporate lending, helping diversify revenue streams and reduce dependence on deal fees.

Financial Snapshot & Outlook

Deal‑making business: softer than expected, with many transactions postponed.
Fixed‑income trading: expected to post modest growth and offset advisory weakness.
Full investment banking revenue: projected to match Q2 2024 levels.
Cost targets: reaffirmed cost control and margin discipline are key.

Deutsche Bank continues its cost‑efficiency drive, maintaining leverage targets and focusing on core business improvement. The bank is also reviewing certain underperforming business lines, with closures or reshuffles possible under its ongoing strategy refresh.

What Lies Ahead

In the near term, markets will watch Q2 trading and advisory revenue numbers closely. The trajectory of U.S. trade policy—particularly any extension or escalation of tariffs—will remain a key driver of corporate confidence and deal momentum. For Deutsche Bank, the ability to pivot between trading and advisory revenue lines will be crucial to achieving year‑end targets.

Investors and analysts will also be watching for updates on cost targets and whether delayed deals reappear in Q3. Success in balancing trading gains with advisory recovery will be critical to sustaining long‑term growth.

Start Your Career Journey

Get hired in just one click