FRANKFURT (Reuters) - Deutsche Bank DBKGn.DE will start to plow more money into its investment banking operations and expects the business to pick up after lagging peers' performance in the quarter.

“(We are) coming from a position where we can redeploy resources - which we reduced in other parts - in the core business,” Chief Executive Christian Sewing said on an analyst calling discussing second-quarter earnings.

He added that the bank would rebuild its pipeline in its fixed income and currencies (FIC) business. “We have capital available,” he said.

The lender, which is in the midst of a sweeping overhaul, said that plans to cut 25 percent of its equities business was largely completed.

Chief Financial Officer James von Moltke added that the bank expects market volatility - which usually drives revenues - to improve compared to last year, but still remain muted.

The bank stressed, however, that despite cuts to the business units like its hedge fund focused prime finance operations, it saw revenues increase and market share stabilize in the quarter.

“Going forward, I do not expect that those (balance sheet) cuts in prime equities will result in lower revenues,” Sewing said.