In its investment banking, Deutsche Bank expects the recently booming business to normalize. "Of course there is a certain degree of normalization compared to the very high earnings levels that we achieved in the past twelve months," said CFO James von Moltke on Wednesday at a conference of the Swiss bank UBS. There will be a decrease next year compared to the current level. The division is a central source of income for the Frankfurt money house. Their results contributed to the fact that the institute was able to exceed the profit expectations of the analysts in the third quarter.
Von Moltke also spoke about the real estate sector in China.
Most recently, there was concern about a worsening liquidity crisis.
“I think it's too early to be absolutely sure, but we don't see any stress in the banking book in China, even with real estate,” said von Moltke.
Deutsche Bank's loan book in China is comparatively manageable.
The institute is looking at it carefully.
Payment difficulties of the heavily indebted Chinese real estate developer Evergrande had sparked fears in the financial markets that a collapse of the group could cause a conflagration in the Chinese real estate sector.
Evergrande is sitting on a mountain of debt equivalent to around $ 300 billion.