Friday, July 31, 2015

German Bank tripled profit – Hamburger Abendblatt


 New Co-chief complains unacceptably high costs and large loads from litigation

                 Frankfurt. The German bank has worked in the second quarter despite continued high burden of litigation further upwards. Pre-tax profit climbed compared with the same period last year by 34 percent to 1.2 billion euros, as the DAX Group announced in Frankfurt on Thursday. The Bank <"p_2" p class => benefited from active trading in the financial markets and favorable exchange rates.

The revenues increased by 17 percent to 9.2 billion euros. The surplus has more than tripled to 818 million euros. A year ago, an extraordinarily high tax burden had burdened the balance sheet. Progress made the Bank to strengthen their capital ratios.

“The solid revenue growth highlights the underlying strength of our business,” said the reigning since July, Co-Chief John Cryan. “However, our challenges are clear:. Unacceptably high costs, persistently high burden of litigation to balance intensive businesses and overall returns for our shareholders, which is too low” Costs rose in the second quarter by 17 percent to 7.8 billion euros. Thus, the cost-income ratio stood at 85 percent. The Bank is therefore for each occupied euro 85 cents off. This is true in an international comparison as too high.

The numerous lawsuits hit with 1.2 billion euros to beech, almost three times as much as a year ago. Overall, the Bank for legal legacy has now reserved 3.8 billion euros. The legal risks for which cash has not yet come, the Bank now liquidated to 3.2 billion euros. As the largest of outstanding concerns case disputed transactions are securitized real estate loans in the United States from the financial crisis

Cryan asked for patience in transforming the Bank. “. It will take years to deliver” He had replaced on July 1, Anshu Jain as part of the dual leadership with Jürgen Fitschen. After the Annual General Meeting in May 2016, the Briton will be sole CEO.

A capital increase is not planning Cryan time being. “I know that there are these speculations,” the Briton said in a conference call. “Another capital increase will not solve our core issues.” In addition, the issue of new shares is not in the interests of shareholders. “Our main challenge is strategic in nature, we have a structural cost problem that is obvious.”

Again and again had torn misperceptions to the capital requirements of the supervisory authorities as well as billions of penalties because of numerous scandals holes in the balance sheet and the image of the battered bank. The reigning since 2012 twin spiers Jain / Fitschen became increasingly coming under fire. At the annual general meeting in May, shareholders punished from the duo. In June, the Supervisory Board set the course for a new beginning.


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