City Of London
Deutsche Bank Slumps as Cost Headwinds Pile Up for Sewing
- Lender flags headwinds from wage inflation, regulatory levies
- Cost concerns overshadow 15% jump in fixed-income trading
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Deutsche Bank AG slumped as rising wages and regulatory levies revived concerns that Chief Executive Officer Christian Sewing will struggle to contain expenses.
Germany’s largest lender fell as much as 6.7% in Frankfurt trading, after signaling that cost reductions targeted for this year are being eaten up partly by wage inflation and regulatory levies. The deteriorating cost picture overshadowed revenue gains across all operating divisions, including a strong performance in the trading unit, which beat Wall Street peers with gains of 15% in fixed-income trading.