FILE PHOTO: CEO Christian Sewing delivers a speech during the annual shareholder meeting of Germany’s largest business bank, Deutsche Bank, in Frankfurt, Germany, May 23, 2019. REUTERS/Kai Pfaffenbach
FRANKFURT (Reuters) – Deutsche Bank (DBKGn.DE) chief executive Christian Sewing said on Tuesday that markets were too optimistic in their assessment of a recovery from the coronavirus crisis.
It’s a bearish statement from one of Europe’s top bankers as key stock indexes have continue their climb from their lows in March.
Sewing, speaking to investors attending an online conference, said that the real economic consequences of the crisis are still uncertain despite an ongoing market recovery.
“Yes, markets repriced, but in my personal view the underlying assumption for this recovery are a bit too optimistic,” he said.
“Second- and third- order effects have not been fully priced in at this stage,” he said.
Nevertheless, Sewing highlighted the strengths of Deutsche, the host of the conference, noting that the “positive momentum” of the investment banking division continued in April and May, particularly in the areas of fixed income and currencies.
Deutsche is in the midst of a major overhaul, shedding staff and exiting some business areas in an effort to reverse years of losses.
Reporting by Tom Sims, Hans Seidenstuecker and Patricia Uhlig; editing by Thomas Seythal and Thomas Escritt