Podcast Summary: Bloomberg Talks

Episode: Deutsche Bank CEO Talks Credit Markets
Date: October 17, 2025
Host: Bloomberg (Lisa)
Guest: Christian Sewing, CEO of Deutsche Bank

Episode Overview

In this episode, Bloomberg’s Lisa sits down with Christian Sewing, CEO of Deutsche Bank, to discuss the current state of credit markets, the optimism (and caution) among corporate leaders, the prospects for regulatory and structural reform in Europe, and Deutsche Bank’s strategy in a changing global financial landscape. Additional topics include the impact of fiscal policies in Germany, corporate de-risking from China, the role of the US dollar, and how artificial intelligence is reshaping banking operations.

Key Discussion Points and Insights

1. Credit Conditions and Market Volatility

• No Signs of Credit Deterioration: Sewing reassures that Deutsche Bank isn’t seeing deterioration in its credit portfolio, across geographies and asset classes.
  • Quote: “We’re very confident with our credit portfolio...I see no credit deterioration long term.” — Christian Sewing, [00:50]
• Volatility vs. Fundamentals: While market volatility is high and reactions are pronounced, underlying fundamentals haven’t shown long-term issues.

2. Optimism Amid Uncertainty

• Share Performance and Executive Confidence: Despite shares being up over 80% this year, Sewing emphasizes that overall confidence among executives remains strong.
  • Quote: “There is a lot of volatility in the market...But I wouldn’t say that people are concerned of a deterioration.” — Sewing, [01:58]
• Resilience Against Recession Fears: Discussions around recession have faded, with more focus on growth, employment, and competitiveness, especially in Germany and Europe.
• Geopolitical and Trade Risks: These remain in background discussions but haven’t dampened executive outlook materially.

3. Market Optimism vs. Caution

• Liquidity and Valuations: Sewing notes that liquidity is ample; any market dip quickly attracts new money. While some valuations are “stretched,” the market as a whole isn’t overvalued.
  • Quote: “Whenever there is a slight decrease in market prices, liquidity immediately comes in again.” — Sewing, [03:07]

4. European Banking, Regulation, and Reforms

• Regulatory Shifts: Tangible signs such as delays in implementing new capital regulations and buffer adjustments are noted, but Sewing stresses that a true competitive leap requires deeper structural reforms beyond deregulatory tweaks.
  • Quote: “Regulation is important…but the most important is the underlying growth. Therefore we need structural reforms in Europe.” — Sewing, [04:14]
• Structural Reforms Needed: Key reforms include tackling high energy prices, reducing bureaucracy, expediting infrastructure investment, and improving the investment climate.
  • Quote: “Just growing by stimulus program will not be sufficient. We need imperial structural reforms.” — Sewing, [05:28]

5. Corporate Supply Chain Diversification

• Shift from China: Since COVID, German and European corporates are actively diversifying their supply chains and boosting domestic investment (“Made for Germany” initiative, with over €700B planned).
  • Quote: “German corporates… are very active in diversifying their supply chains… over 700 billion euros in Germany over the next three years.” — Sewing, [06:32]

6. Currency Flows and the US Dollar

• No Threat to Dollar Reserve Status: There was some Q2 trend of reallocating away from the dollar, with real flows shifting toward Europe, but Sewing downplays notions of a dollar decline.
  • Quote: “The US dollar will be the reserve currency… But a lot of investors are trying to reallocate.” — Sewing, [07:26]
• Drivers of Flows: Both derivative markets and real allocation shifts observed, depending on reform momentum in Europe.

7. Deutsche Bank’s Strategic Focus

• Global Diversification: Sewing emphasizes that Deutsche Bank will remain globally diversified, with a solid base in Germany but not overly concentrated anywhere.
  • Quote: “Despite all the talks about the end of globalization, globalization will not end… it needs global banks with local know-how.” — Sewing, [08:57]
• Organic Growth Over Acquisitions: Preferred strategy is focused internal improvement—better capital management, technology investment, and organic RT growth—rather than acquisitions.
  • Quote: “As long as I have the chance to further increase my return on equity with homework, that is always the preferred option.” — Sewing, [10:04]

8. Artificial Intelligence in Banking

• Broad Integration of AI: AI use is already impacting revenue (via better client service), efficiency/cost, and compliance. Research report quality and speed have particularly improved.
  • Quote: “It will be a game changer going forward… one of the key levers how to increase profitability of banks.” — Sewing, [11:20]
• Prioritization Needed: With many use-cases, Deutsche Bank is focusing on a structured, prioritized approach to AI investment.

Notable Quotes & Memorable Moments

• “We’re very confident with our credit portfolio… I see no credit deterioration long term.”
  — Christian Sewing, [00:50]

• “Just growing by stimulus program will not be sufficient. We need imperial structural reforms.”
  — Christian Sewing, [05:28]

• “German corporates… are very active in diversifying their supply chains… over 700 billion euros in Germany over the next three years.”
  — Christian Sewing, [06:32]

• “The US dollar will be the reserve currency… But a lot of investors are trying to reallocate.”
  — Christian Sewing, [07:26]

• “Despite all the talks about the end of globalization, globalization will not end… it needs global banks with local know-how.”
  — Christian Sewing, [08:57]

• “It will be a game changer going forward… one of the key levers how to increase profitability of banks.”
  — Christian Sewing, [11:20]

Timestamps for Important Segments

| Timestamp | Topic/Event | |-----------|-------------| | 00:50 | Credit quality and market volatility: No credit deterioration | | 01:58 | Executive confidence in light of market optimism and valuation concerns | | 03:07 | Surprised by optimism despite global uncertainties, liquidity’s stabilizing effect | | 04:14 | European banking sector: regulation vs. need for broad structural reform | | 05:28 | Importance of combining fiscal stimulus with reforms (energy, bureaucracy) | | 06:32 | Corporate supply chain diversification and “Made for Germany” investment initiative | | 07:26 | Investor trends regarding US dollar and European flows | | 08:57 | Deutsche Bank strategic focus: global diversification and resilience | | 10:04 | Organic growth favored over acquisitions | | 11:20 | AI’s impact on banking: efficiency, compliance, and profitability |

Conclusion

Christian Sewing presents a picture of cautious optimism: markets remain volatile but sound, with no signs of credit distress in Deutsche Bank’s portfolio. Structural reforms in Europe are identified as the real drivers of growth potential and competitiveness, rather than short-term regulatory or fiscal tweaks. The bank is focused on organic growth and leveraging artificial intelligence to enhance profitability, while maintaining a strong, globally diversified footprint. The episode provides both a snapshot of current market thinking among top European financial leaders and a strategic vision for navigating uncertainty.