According to Chris Burt, Director of the Risk Coalition Research Company, “where the market suspects the organisation is taking more risk than might be appropriate,” shares may be lower than expected due to financial results and company performance.

“Imagine the Titanic moving at full speed across the Atlantic, making fantastic progress,” he continues.

While European banking shares increased by 20% between January and July 2024, hitting nearly nine-year highs, “the STOXX Europe 600 Banks index was down 0.5% after a raft of bank earnings fed into analyst and investor concerns about the sustainability of the sector’s profit growth. Eurozone banks see investment banking boost but outlook stalls shares,” according to Mathieu Rosemain, Tom Sims, and Valentina Za’s article.

A legal provision related to Deutsche Bank’s failing Postbank unit contributed to the company’s quarterly loss and 7% stock decline. The company also scrapped plans for a repurchase and increased bad loan loss charges. Although BNP Paribas anticipates exceeding its €11.2 billion net profit goal, an 11% decline in net interest income (NII) has raised worries in its retail division.

Additionally, Moody’s Ratings thinks that UniCredit and Santander’s NII have essentially peaked. As a result, risk charges will go up, even though growing profits have improved investor mood. Despite this, lenders have traded below their tangible book value, which raises questions about whether their profitability can last.

Despite this, the investment banking businesses of BNPP and Deutsche helped to diversify revenue streams in recent quarters by offsetting any shortfalls.

“At BNPP, revenue from equities trading and prime brokerage services jumped 58%,” added Rosemain, Sims, and Za.

Ambivalent attitude

According to Olivier Panis, Associate Managing Director of Financial Institutions Group at Moody’s Ratings, the outlook for Eurozone bank earnings remained rather stable. In 2023, the banks in the zone increased their net interest margins (NIMs).

“We expected profitability to stabilise in countries where variable-rate lending predominates,” he said.

In the first half of 2024, HSBC and other Italian and Nordic banks did better than their counterparts. In 2025, Moody’s Ratings predicts that bank profitability in the Eurozone will “remain strong” notwithstanding a drop.

As per Panis, Moody’s Ratings believes most profit margins have peaked as policy rates began to decline this year. However, the move from current accounts to more costly term accounts will slow down.

After two years of low lending activity, Panis continues, “Stable economic growth and inflation near central bank targets will offer the opportunity for stronger lending volumes while also supporting asset quality and risk charges.”

However, he believes that operating costs will continue to rise. Higher compensation costs and technology are to blame for this. As a result of higher interest rates in nations like Spain, Portugal, and Italy, Moody’s Ratings believes that there may be some divergent profitability trends among banking systems with a larger percentage of assets at variable rates.

According to Fitch Ratings, the biggest banks in Europe are expected to be profitable in 2024, matching the high levels of 2023. Fitch’s September 2024 “Large European Banks Quarterly Credit Tracker” indicates that most of the 20 major banks experienced strong results in the first half of the year.

Due to their “better than expected earnings,” it raised its full-year projections for a few banks. For instance, according to a press release, HSBC and other Italian and Nordic banks did better than their counterparts in the first half of 2024.

They were expected to continue performing at a high level from July to December. French banks, on the other hand, are falling behind their counterparts and are only predicted to see modest increases in profitability.

According to Z/Yen Senior Research Partner Hugh Morris, the outlook is generally favourable. He claimed that the Eurozone’s growth rate is likely between 3-4%, which should boost bank profits throughout the banking industry because mortgages account for half of bank lending in the Eurozone, and demand for them has been generally weak over the past few years.

He clarifies that the European Central Bank (ECB) “believes the banks will be able to improve with a forecast of global GDP growth of 3.4% for the next two years.”

ECB believes that the Eurozone is expected to closely align with this forecast. One of the driving factors behind this is the anticipated long-term increase in mortgages, in contrast to their previous period of stagnant growth in the region.

Income from net interest

Morris finds the banks’ net interest incomes (NIIs) among the most intriguing aspects. They are crucial to the medium-term financial gains of banks. He claims that cost management has been a major driver of BNP Paribas and that it is one of the factors that drive short-term development.

He underscores that while other criteria may fluctuate, NII remains the benchmark. For instance, cost control helped BNP achieve record profits, Morris continues. During a 40–50-year cycle, banks manage costs when they have to and don’t when they don’t.

The market examines NII because it has doubts about BNP’s ability to maintain rigorous cost control. That is the crux of the problem. For what reason does the market have doubts about BNP? A significant portion of the solution is NII.

“A full-scale conflict in the Middle East is another possibility. The entire world will get sick if someone sneezes in that region. More than Ukraine is to blame for the rise in the price of Brent crude oil. These kinds of price shocks will impact bank lending and investment decisions. Although no one can predict what will occur, these are the main contributing elements. Morris also believes that the Eurozone is growing slowly and that banks’ expansion would be constrained by the West’s latent productivity,” Morris added.

The banks resist

It is possible that certain banks were undervalued and are not receiving the full reflection of profitability, which is why they have been held back. Morris thinks that worries about NII and the long-term viability of headline profits may be to blame.

He said, “A lot depends on how each bank is made up, and there is cyclical falling in love and out of love with investment banking as a way to kick start growth.”

Deutsche Bank incurred significant losses as a result of this mistake. Twenty years ago, Deutsche Bank aimed to establish itself as a global investment bank to rival the American market, but within five to ten years, everything crumbled. Despite having fewer assets than Santander, it is the 22nd largest bank globally. In terms of assets, it is only somewhat larger than the Toronto Dominion Bank.

The NII is a significant measure of medium-term performance, and stock markets are attempting to price in the value of future performance. If they observe that the NII’s performance deviates from short-term gains, they will pay closer attention to that.

Interest rate issues have hindered certain banks, according to Panis. The sustainability of banks’ profit growth may be affected, he believes, as the advantages of higher rates to their net interest margins have begun to wane.

Despite rate reduction by central banks, he predicts that borrowing costs will continue to be higher than they were before 2022. This will have an impact on borrowers’ capacity to refinance and repay debts.

The increased cost of living and the fact that asset values in Europe have not changed significantly since 2022 only make the situation worse.

“As a result of the monetary tightening, the cost of funding has materially increased, with the end of targeted longer-term refinance operations (TLTROs) and a material shift in the deposit mix toward more expensive term deposits,” he continues, adding that he believes this could affect asset quality and moderate lending volumes.

Even while this change may have stabilised, the deposit mix hasn’t changed since 2022, and central banks have started lowering interest rates once more.

The revenue and expenses from the stock market compound these difficulties.

According to him, capital markets income helps sustain revenue, but inflation in salaries and one-time expenses are driving up costs, which may hurt the long-term viability of profit growth.

He agrees with Morris that “geoeconomic fragmentation, which could increase volatility, impact banks’ operating environments, their asset risk, and profitability,” has several sources of uncertainty. The turmoil in the Middle East and the war in Ukraine are two prime examples of this.

The effect of NII

However, Morris believes that NII is primarily responsible for the worries regarding the durability of profit increases.

Before adding that the market has witnessed the emphasis on cost management and the interest in erratic industries, like investment banking, come and go, he states, “It is the bread-and-butter business, and it is not looking so rosy.”

The biggest banks in Europe are probably going to be profitable in 2024, matching the high 2023 levels.

Despite the market’s attempt to incorporate its likely performance into the current stock price, NII remains a persistent presence. Since the share price ought to reflect the present value of anticipated medium-term profit streams, Morris views it as Economics 101.

He believes that this indicates that “the markets’ perception of forward value will outweigh one set of half-year results.”

He doesn’t know Unicredit well, but he thinks it’s an unusual strategy that the CEO, Andrea Orcel, decided to give back almost all of the company’s profits to shareholders in the form of dividends and buybacks.

Morris further says it is unclear whether the choice to purchase a digital bank in Belgium resulted in a decline in quarterly revenues, especially with regard to the latter, and whether it caused a 3% decline in shares.

Even if purchasing a digital bank costs money up front, Unicredit may benefit in the long run. At the same time, it will not become distinctly apparent for a considerable amount of time.

“This uncertainty would cause its shares to decline, and although the markets appreciate innovation, they are leery of money pits and white elephants,” Morris noted.

According to Panis, increased market volatility is driving activity for investment banking, and client transactions are increasing capital markets revenue. He claims that this will help revenue growth in 2024. This is especially true for banks that “may suffer from low lending activity in commercial banking, as is the case for French banks, for example.”

Nevertheless, he notes that the growth of the capital markets division “drove a 6% rise in adjusted revenue to $65 billion for European global investment banks in Q2 2024, with a significant boost from equity and investment banking income.”

Then there are the fees associated with underwriting and advising on debt issuances, equity, and M&A transactions. According to him, each of them adds to the total earnings.

“When a deal is there to be done, the fees and margins are probably better than they have been,” Morris adds, even though there are fewer opportunities available.

Leverage against the cost base is necessary, and he discovers that if three individuals are needed to complete a $50 million deal, it might take all of them to complete a $500 million contract. He asserts that while this approach is advantageous for finding deals, it may leave you with an uncovered cost base when market conditions change. This indicates that the cost base stays essentially fixed. Growing economies of scale tend to make profitability highly volume-dependent.

Capital market diversification

However, diversification of capital markets activities in Europe has benefited investment banking, in part because of the COVID-19 pandemic, which caused several banks to suffer considerable losses. Panis pointed out that certain banks also decided to lower their risk appetite restrictions for specific equity derivatives with exotic structures.

Banks have also developed more balanced worldwide market divisions with a more diverse product mix as a result of geopolitical crises, such as the Russia-Ukraine war, which generated price instability.

“This diversification is rather credit-positive when implemented successfully because it exposes less of the overall business model of those banks to market turbulence and makes capital market revenues relatively less volatile,” he says, adding that not all European banks have equal access to the depth of the US capital market.

Nonetheless, Morris holds the belief that certain banks are concealing issues and should return to their fundamental role as a value store. He believes that banking should be a boring, medium-margin industry.

However, he believes that balance sheets are very challenging to correctly understand since “human ingenuity has added multiple layers of risk and complexity to that, to the point that banks’ report and account. This leads to a wobble and a misconception of share value.”

According to author and banking futurist Brett King, a conceptual shift is necessary to align investments with broader social initiatives and evolving value creation. This requires a re-evaluation of how performance is assessed.

He argues that, despite the profitability of investment banking, it is not appropriate for the modern world. He believes that investment banks, along with banks in general, must adopt a fundamentally new way of thinking to continue thriving. To achieve this, they need to develop more diverse revenue sources that align with contemporary value systems.

High interest rates and strong investment banking revenues have driven banks’ profitability, but market scepticism persists, reflected in restrained stock performances. Analysts attribute this hesitation to factors such as declining net interest income (NII), rising operational costs, and geopolitical uncertainties.

Geopolitical tensions, inflation, and fluctuating deposit mixes further complicate the outlook. While stable economic growth and improved lending volumes offer hope, rising operating costs and risk charges may offset these gains. The banking sector’s ability to navigate these challenges will depend on strategic cost management and adaptability to evolving financial conditions.

Ultimately, while Eurozone banks have demonstrated resilience, doubts over their long-term profitability persist. The market remains cautious, weighing short-term earnings against the broader economic landscape. As interest rates shift and global uncertainties loom, the banking sector must strike a balance between growth and risk management to sustain investor confidence and maintain profitability in an increasingly complex financial environment.

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A major cost target was also dropped by Deutsche Bank, but they still announced plans to repurchase 750 million euros (USD 780.90 million) worth of shares. Christian Sewing, the CEO, set several ambitious profit and cost targets for the once-troubled bank, and the results set the stage for a pivotal year. A few analysts have expressed doubt that Deutsche will accomplish all of its objectives.

“We have always said that 2025 will be decisive for us. At the end of this year, we will be judged by whether we have been successful with our transformation and growth strategy,” Sewing wrote in a memo to employees.

According to the CEO, the bank has started to consider modifying its plan for 2026 and beyond. Some businesses may close, and specifics will be revealed later in 2025.

Deutsche Bank has changed its target for this year’s cost-to-income ratio from less than 62% to less than 65% to make investments. When questioned about whether he would consider staying for another term, Sewing, who has been the bank’s leader since 2018, said he was still focused on this year’s goals.

The fourth-quarter net profit attributable to shareholders was 106 million euros, down from 1.2 billion euros a year earlier and below analyst expectations of roughly 380 million euros. Profit for the full year missed forecasts of almost 3 billion euros, dropping from 4.21 billion in 2023 to 2.70 billion.

However, revenue from buying and selling fixed-income securities and currencies rose 26%, beating analysts’ estimates for a 17% increase. Income in Deutsche Bank’s unit advising on deals and stock and bond sales rose 71% as investments in the business paid off.

Pretax profit fell short of estimates amid a 14% jump in costs, with Deutsche Bank also raising its guidance for expenses as a share of income in 2025. Sewing wants to balance cost controls with investments in growth as he eyes fulfilling the pledge to return more than 8 billion euro to shareholders over the medium term. Under his watch, the German lender has now refocused its strengths in fixed-income trading and corporate banking, while building up the advisory business to boost fee income.

Deutsche Bank is also planning 2.1 billion euro in capital distributions in 2025, including 1.3 billion euro in dividends for 2024 and 750 million euro in share buybacks for which it has already received regulatory approval.

Deutsche Bank’s trading unit’s performance has been driven partly by a recovery of the venture’s US rates business, the trading in government bonds and derivatives, as well as a strong financing business, which supplies credit to multinational companies.

Revenue declined in the corporate and private banks, where falling interest rates and a weak economy weighed on income. Provisions for souring loans, at 420 million euro in the quarter, were roughly in line with estimates. The lender now expects such provisions to moderate in 2025, after it had to raise its guidance twice in 2024 in a sign that Germany’s economic troubles were spilling over into its loan book.

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For the three months that ended on September 29, Netherlands-based NXP Semiconductors reported adjusted diluted earnings per share of USD 3.45 and revenue of USD 3.25 billion. Analysts polled by investing.com had called for adjusted EPS of USD 3.43 and revenue of USD 3.25B, respectively.

The company’s automotive chip business continued to drag on performance, with recorded revenue of USD 1.83 billion in the third quarter, down 3% year-on-year. The Industrial & IoT (Internet of Things) segment, the second largest unit, saw revenue decline 7% year-on-year to USD 563 million, reflecting increasing macro-related weakness in this sector.

The Mobile segment was the sole unit showing annual growth, with revenue up 8% year-on-year to USD 407 million.

For the fourth quarter, NXP Semiconductors guided adjusted EPS in a range of USD 2.93-3.33 on revenue between USD 3.00-3.20 billion. That compared with estimates for adjusted EPS of USD 3.65 on revenue of USD 3.34 billion.

“Although Q4 guides have been widespread within the broader semiconductor sector, the magnitude of NXPI’s guidance for that quarters expected to prove disappointing,” Deutsche Bank analysts said.

They also believe the primary focus of the tech venture’s earnings call will be on “the drivers of this soft guide, the likely duration of it, as well as the gross margin implications.”

“Beyond these near-term dynamics, we expect most long-term questions to be answered during the company’s upcoming analyst meeting,” analysts led by Ross Seymore added.

Separately, Morgan Stanley analysts view NXPI’s Q3 2024 print “as confirmation that automotive weakness will be a multi-quarter trend.”

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According to projections made by Shi Ji, an analyst with China Merchants Bank International Securities, the American manufacturer might sell 155,000 vehicles in China from April to June 2023, a 13% increase over its first-quarter record.

Although BYD and Aion, the EV division of Guangzhou Automobile Group, gained market share, Tesla’s market share in China’s battery electric vehicle market will decline in the quarter to 13.7% from 16% in the first three months of 2023, Shi added.

According to Deutsche Bank, Tesla might sell 448,000 units worldwide and 153,000 in China during the second quarter of the 2023-24 FY.

According to Yale Zhang, executive director of Shanghai-based consultancy Automotive Foresight, “Tesla must sell into China’s lower-tier cities to pursue future expansion, but its direct sales approach would be too costly to expand its sales network into hundreds of such towns.”

In contrast, he continued that BYD has a significant edge in those markets where there are dealerships.

Over the weekend, Tesla will reveal its global sales figures. Association statistics will be accessible in the first week of July for China sales.

After the United States, China is Tesla’s second-largest market and houses its most significant manufacturing. To increase sales, it cut the price of its two outdated models at the beginning of 2023. This sparked a price war, with rivals like BYD following suit by cutting pricing or introducing new, more affordable versions.

BYD defied the trend and increased its lead with its supply of cars priced under 300,000 yuan (USD 41,500), while smaller EV manufacturers like Nio and Xpeng struggled as China sales fell in recent months.

As its exports increase, BYD is also catching up to Tesla in areas outside of China. In the first five months, it outsold Tesla in Singapore, and in May 2023, its Atto 3 outsold Tesla’s Model 3 in Australia.

To boost sales, Tesla is preparing updated models of the Model 3 and Model Y. The corporation is also collaborating with Chinese officials to approve its cutting-edge autonomous driving software.

Tesla is expanding sales of its China-made vehicles into additional regional markets, including Thailand and Malaysia, as its Shanghai facility expands its yearly manufacturing capacity to over 1 million units.

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Shreyas Gopal, a foreign exchange expert at Deutsche Bank, warned that a huge, underfunded, and untargeted package of tax cuts and expenditure plans might alarm global markets in a note titled “crunch time for sterling,” written on the day Liz Truss won the Conservative leadership contest.

Because investor trust “cannot be taken for granted,” according to Deutsche Bank, it might result in foreign investors denying to finance the United Kingdom’s external deficit by buying government debt.

Shreyas Gopal emphasised that because the United Kingdom’s current account deficit is already at historic highs, the British pound needs significant capital inflows to be maintained by rising investor confidence and declining inflation expectations.

“However, the opposite is happening. The United Kingdom is suffering from the highest inflation rate in the G10 and a weakening growth outlook,” Shreyas Gopal wrote.

The United Kingdom’s current account calculates the difference between goods and service imports and exports, as well as between United Kingdom investments abroad and foreign investors’ returns on their United Kingdom investments. Within the first three months of the year, it reached a record 7.1% of GDP.

If Liz Truss’s administration alters the Bank of England’s mandate to combat inflation, as was indicated during the leadership campaign, inflation expectations may increase even further.

“A balance of payments funding crisis may sound extreme, but it is not unprecedented: a combination of aggressive fiscal spending, severe energy shock, and a slide in sterling ultimately resulted in the UK having recourse to an IMF loan in the mid-1970s,” Shreyas Gopal added.

The current account deficit in Britain is financed by the “kindness of strangers,” according to Mark Carney, who served as governor of the Bank of England.

When the pound hit a record low in September 1976, James Callaghan’s Labour government asked the IMF for a USD 3.9 billion loan, the largest sum ever requested from the organisation at that time. The Opec oil crisis came after the “Barber boom” of the early 1970s, during which Conservative chancellor Anthony Barber lowered taxes in an effort to spur economic growth, weakening the pound and triggering stagflation.

If Liz Truss invokes Article 16 of the Northern Ireland Protocol to invalidate a portion of the post-Brexit treaty, she may scare away international investment.

Shreyas Gopal warned that “taking emergency measures around the Northern Ireland Protocol could add to the uncertainty on trade policy. With the global macro backdrop so uncertain, investor confidence cannot be taken for granted.”

Liz Truss made campaign promises to roll back a national insurance increase and eliminate a company tax increase. In order to assist households, her team has also advised that the VAT be reduced by 5 percentage points.

Recently, Liz Truss pledged to address energy costs and present a “strong plan to slash taxes and build our economy.” In the absence of tax increases, a price freeze on some energy bills may cost tens of billions of pounds, increasing the UK’s borrowing requirements.

Due to the energy crisis that is affecting private families, commercial enterprises, and public services, HSBC cautioned that Liz Truss is facing an “exceptionally tough time.”

According to HSBC, the United Kingdom may borrow £87 billion more than anticipated this fiscal year. This includes the £17 billion in tax cuts Liz Truss promised during the campaign—which will increase to £29 billion the following year—as well as the £35 billion in additional support for households and businesses, which may include a possible energy bill freeze. Finally, an additional £25 billion will be spent on debt servicing.

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Reportedly, the new BAV service will also allow Deutsche Bank to ensure that payments from its clients are arriving at the intended beneficiary using the correct account details, by validating the information centrally via Swift.

Jose-M Buey, global head, core platforms and accounts solutions, Deutsche Bank Corporate Bank told the media, “The BAV service not only addresses a key market problem prevalent today but also brings significant operational benefits in terms of end-to-end efficiency and fraud reduction to our corporate clients.

“It is also a clear example of how API technology can be used to create an innovative solution that perfectly aligns with our strategy to build a real-time API based accounts platform.”

In September, it was reported that Deutsche Bank has acquired Berlin-based payment service provider Better Payment for an undisclosed amount. The deal was expected to help Deutsche Bank expand its market share in the fast-growing online payment processing market.

Earlier this year, it was reported that Deutsche Bank’s plan to close its branches in Germany could see around 400 to 450 people lose their jobs in the country. The bank planned to eliminate around 20 percent of its workforce in a four-year restructuring plan, which was announced in 2019.

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According to media reports, Deutsche Bank will integrate Better Payment’s technical solutions into its existing product range over the next 12 months.

Kilian Thalhammer, head of merchant solutions at Deutsche Bank told the media, “Better Payment gives us broader market access in payment processing. Thanks to the know-how of their employees, their existing dealer relationships and technical solutions, we can accelerate our growth in the German market, which is key to us.”

“We will develop additional synergies by integrating the respective products from Deutsche Bank and Better Payments.”

Earlier this year, it was reported that Deutsche Bank’s plan to close its branches in Germany could see around 400 to 450 people lose their jobs in the country. The bank planned to eliminate around 20 percent of its workforce in a four-year restructuring plan, which was announced in 2019. The bank also announced last year that it plans to close 100 out of its 500 Deutsche Bank-branded branches.

In this regard, a Deutsche Bank spokesperson said that the bank was discussing with the labor representatives how to develop the private client’s business in Germany, how to adapt the branch network and how to reduce jobs.

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Wilson previously worked with Deutsche Bank where he worked as the managing director in their Global Prime Finance business.

In his latest role, Wilson will be globally responsible for Prime Brokerage, Inventory Management and Electronic Execution activities. He is based out of London and reports to Raphael Masgnaux, Global Head of Prime Solutions and Financing (PS&F) & G10 Rates, and to Nicolas Marque, Global Head of Equity Derivatives and Head of Global Markets for Continental Europe.

This latest appointment is regarded as a key milestone in the integration of Deutsche Bank’s Global Prime Finance and Electronic Equities business along with BNP Paribas’ commitment to creating a global top five prime services provider.

Along with Wilson, John Gallo is also appointed as the Global Head of Institutional Sales along with his current role as Co-Head of Global Markets Americas. His new responsibilities will constitute the continued expansion of the bank’s client franchise worldwide. He will also aid the bank to realise its growth ambitions across regions and solidify its position as a premier global bank.

Gallo is based out of New York and reports in this new capacity to Olivier Osty, Head of Global Markets. Before joining BNP Paribas in 2017, he previously worked at Deutsche Bank where he ran the Institutional Client Group.

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Deutsche Bank and PBOC will carry out open banking activities such as repurchasing of treasury bonds, policy financial bonds, central bank bill issuance and other trading instruments.

In this regard, Rose Zhu, the bank’s chief country officer in China told the media, “This PBOC appointment recognises the strength of Deutsche Bank’s capital markets franchise, and reflects China’s determination to continue opening up its capital markets. The rapid development of the China market provides broad opportunities for global participants and Deutsche Bank will continue to deepen the China market, leverage its global network, and exercise best practice risk management to support the country’s continuous capital markets opening and development.”

Last month, it was reported that Deutsche Bank is replacing its global pricing engine for emerging-market currencies in London with one in Singapore. This is because of the level of surging trading in the Asian continent and also the increasing importance of China’s renminbi.

Deutsche Bank also plans to close its branches in Germany and this could lead to 400 to 450 people losing their jobs in the country, media reports said. The bank is planning to eliminate around 20 percent of its workforce in a four-year restructuring plan, which was announced in 2019. The bank also announced last year that it plans to close 100 out of its 500 Deutsche Bank-branded branches.

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A Deutsche Bank spokesperson told the media through email, ”We’re currently discussing with the labor representatives how to develop the private clients business in Germany, how to adapt the branch network and how to reduce jobs. We cannot preempt the outcome of those talks. A decision hasn’t been made at the current juncture. Once this has happened, we will first inform our employees and then the public.”

Recently, it was also reported that Deutsche Bank and Mastercard would deepen their collaboration as the Franfurt-headquartered bank aims for a greater share of the payments business. The partnership will seek to jointly develop digital payment solutions for companies. According to a press release, the collaboration will target businesses, helping them reach new customers, “develop digital business models and expand sales channels in Germany and beyond.”

Earlier this month, Deutsche Bank, along with three other lenders, was penalized by Taiwan after a probe into speculation on the surging local currency last year involving grain companies. The Taiwanese central banks said that Deutsche Bank will be banned from engaging in transactions of foreign exchange derivatives for the next two years.

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