(Bloomberg) --

Deutsche Bank AG’s investment banking division will see revenue drop by about 10% in the third quarter from a year earlier, Chief Financial Officer James von Moltke said Thursday.

The consensus forecast from analysts polled by Bloomberg currently sees third-quarter investment banking revenue falling 19%. Deutsche Bank will also book about 700 million euros ($820 million) in additional costs for IT investments, job cuts and reductions in office space in the remainder of the year, von Moltke said at a virtual conference hosted by Bank of America Thursday. 

Better-than-expected revenue will help the lender offset the new expenses, the CFO said, as Deutsche Bank approaches the final stretch of a four-year turnaround plan. Chief Executive Officer Christian Sewing has faced a number of cost headwinds but has repeatedly reaffirmed his profitability target for next year.

Investment banking head Mark Fedorcik said last week that revenue from trading securities accelerated in August and the first weeks of September after a slow start to the quarter. There’s also “robust activity” in parts of the financing unit and in the business of advising on deals and capital raisings, he said, confirming previous guidance from the company that overall revenue at his division this year will be about 9.3 billion euros ($10.9 billion). 

©2021 Bloomberg L.P.