The employees of Deutsche Bank are threatening under their new boss turbulent times: John Cryan, since July 1, Co-CEO of the Institute, now revealed in an e-mail to the workforce of its uncomfortable side: The current cost level is “simply unacceptable”. He announced “a number of important changes” later this year. This could mean, among other things the elimination of thousands of jobs.
“changes can be stressful, but maintain the status quo is not an option,” wrote the 54-year-old Briton. The costs have risen by 17 percent in the second quarter. “This is a wasteful use of our hard-earned income, and we must all work to reduce costs,” said Cryan clear. The role that will play in Germany’s largest institution of new boss is so clear than ever: He is the long-awaited by investors renovators. He will trim the Frankfurter money home again on profitability and make the adjustments with which his predecessors waited too long.
The Briton had surprisingly a month ago Anshu Jain replaced on the executive chair. The decisive factor was probably the suspicion was that had met with at the Annual General Meeting, the shareholders of the leadership and the two made another persevere more and more difficult.
There, the two co-heads of Jain and Jürgen Fitschen received a sensationally low approval of 61 percent. Normal are approval rates of 95 percent and more. Investors disturbed mainly to the high costs that did not get the two co-heads in the handle. In 2012 she had announced, the annual costs by 4.5 billion euros, but the ratio of costs to income is still far from the target of 65 percent.
profit earner was mainly Investment Banking
That should now change Cryan. He leads the institute initially with co-chief Fitschen, who wants to resign from his post mid-2016, but holds back with public appearances now. The presentation of the quarterly balance sheet took Cryan. He was able to report a profit jump which was still to be charged to the account of Jain and Fitschen.
was triggered by the controversial but well-running investment banking. Pre-tax profits rose by over a third to 1.2 billion euros. Cryan was thus far from satisfactory: The financial success Deutsche Bank remained below its potential. The quarterly results lie “because not nearly where we should be,” he said
The stock market applauded the other hand:. The DAX-listed shares climbed in the top by 4.5 percent to 31.67 euros, which marked a three-month high. According to Equinet analyst Philip Häßler the German bank has performed better than its competitors in the United States. This shows clearly that the German financial institution have gained market share.
“The first half of the year, in our view very positive development. The operational progress is visible”, wrote LBBW analyst Ingo pious in a commentary. “However, we expect the second half of high expenditures for the forthcoming restructuring.”
Cryan, who sat the last two years on the Supervisory Board of Deutsche Bank, currently incubates about the details of the “Strategy 2020″. After Cryans estimate the German bank is far too complex, which weighs on the return, can stagnate the dividend, while the US competition which attracts. Many European banks have in recent years consistently saved as the German bank.
investment bank to slim
For the people of Frankfurt, the “2020″ of clearance should be. Details will introduce in the fall Cryan. In essence, it comes to be smaller – including through the sale of Postbank, the dismantling of the private client business and a retreat from several countries
The. investment bank that needs a lot of capital is to slim down. Observers expect that the Group eliminated thousands of jobs. An interim report was discussed on Thursday, according to financial circles also on the supervisory board.
At the end of June, the return on equity after tax was a meager 5.7 percent. The US competitors can demonstrate significantly higher rates here. One reason is that there are still many legacy press on the balance sheet:. For disputes the German bank has previously set aside 3.8 billion euros, although the most expensive interest scandal off the table is
In the core bank, there was profit growth across all divisions: The investment bank earned before taxes of 1.2 billion euros, compared to 828 million in the same period last year. It helped that the major bond trading was better than expected – after US banks had delivered more Maue results.
Cryan made it clear once again that he is part of investment banking, the swallow a great deal of capital stub. This is a departure from the previous price. Critics accused ex-chief Jain and time again that he shied away from deep cuts in the division, managed by himself long.
loads of interest doldrums balanced
In retail banking, the institute earned EUR 483 million to EUR 379 million in the comparable quarter – lower provisions for credit losses was ironing out the burden of interest doldrums. Set the German bank was also in payment transactions and asset management, while the internal bad bank significantly expanded its loss.
The fact that he can clean up and clean out, Cryan has proved in his time at the Swiss UBS. As CFO he has his time slashed the balance sheet and done so decisively with the Bank from the crisis. Supervisory Board Chairman Paul Achleitner described the graduates of the elite University of Cambridge as “the right person at the right time”. Cryan himself said: “It will take years to deliver I’m very aware of:. Words are no longer, deeds are required.”
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