Berenberg's top banker has warned that the investment banking sector may need to cut more costs in 2023 amid a challenging environment after the German bank's dealmaking unit's revenue dropped by 38% last year.

The 433-year-old German bank made €290m from its investment banking activities in 2022, according to a company statement, which was a near 40% decline on a year earlier when revenue surged to a record €470m. Net income across the group was €55m, a decline of 65% compared to 2021.