Overall, Deutsche's results don't look too bad. That doesn't hold quite so true in DCM.
Deutsche's 4Q results make for pleasant reading when juxtaposed with those of rivals like UBS and Merrill Lynch - the German colossus managed to sidestep sub-prime writedowns, and ended the year with positive net income of €953m.
Things don't look quite so pretty for Deutsche's DCM bankers, however. The bank employs one of the largest origination teams in London and ranked first in EMEA last year for debt issuance, according to Dealogic. Despite this, revenues from debt origination nearly halved to €714m.
Lower revenues mean lower bonuses, particularly for the dead DCM business. Overall, Deutsche increased spending on compensation and benefits last year by 4%, but more than 2,100 additional staff mean the average banker in the corporate and investment bank will see his/her payout decline nearly 10% to €420k (313k), marginally more than we predicted.