Two of Europe’s largest financial institutions delivered a reminder on Tuesday that investment banking remains a fickle source of revenue, as UBS issued a profit warning and Deutsche Bank reported earnings that were below expectations.
UBS, Switzerland’s biggest bank, warned that it would probably miss an earnings target set two years ago after its profit fell by half in the second quarter, in part because of a dismal performance at its investment banking unit. Deutsche Bank fared better, reporting a 6 percent increase in net profit that still missed forecasts. Revenue from trading fell because of uncertainty caused by Europe’s debt crisis, the bank said, while warning that profit from investment banking would fall short of targets.
The results may help reinforce Deutsche Bank’s decision on Monday to split its leadership between Anshu Jain, the head of its volatile investment banking business, and Jürgen Fitsche...….
Read more at http://dealbook.nytimes.com/2011/07/26/ubs-and-deutsche-bank-results-underscore-anxiety-over-risk/?ref=business
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