Thursday, January 28, 2016

German Bank: After record loss in 2016 highlight the renovation – ABC Online

Thursday , 01.28.2016, 13:03
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The radical reorganization of Deutsche Bank is the latest bear fruit in 2018.

The reorganization need “time, determination and patience,” CEO John Cryan said at the balance sheet presentation in Frankfurt on Thursday. “That does not happen overnight, but I am very confident that we will succeed.”

After the biggest loss in its history and the current year could end up with red numbers. “We will do our utmost to exclude a loss, but we can rule out, of course not. But we strive for no loss, “said CFO Marcus Schenck.

high loads

For 2015, the German bank had announced a record loss a week ago. According to recent figures were below the bar around 6.8 billion euros Lousy – the first annual loss for the Dax Corporation since the financial crisis in 2008 (around € 3.9bn). For 2014, the Bank had recorded around 1.7 billion euro profit

More expensive litigation, amortization and cost of the proposed deletion of net 9000 points -. 4000 of them in Germany – Germany’s biggest burden money home. In investment banking, it was the end of burglaries.

2016 HIGHLIGHT OF REHABILITATION

2016 become the highlight in the renovation of the bank. The Board announced that it would cost one billion euros again. Also for legal risks could after Cryans assessment again may be a “significant amount” to be paid, as the bank some cases “to settle as soon as possible” wool. Overall, the Bank expects but with a lower load than 2015th

Last year, the bank put solely for legal risks additional 5.2 billion euros to the side. Overall, provisions for possible legal losses amounting currently to 5.5 billion euros. There are also possible risks of EUR 2.2 billion, for which there are no reserves. Since 2012, expenses for litigation amounted to 12.7 billion euros.

POST BANK ON THE AGENDA

“Our goal is that we by 2018 again have a clean German bank” said CFO Schenck. Until then, the largest contaminated sites should be processed and the separation of the Postbank across the stage. “Postbank is a topic the next 24 months, which may mean that we will move forward here in 2016, which may mean that it happened only 2017th We’ll do that depends on the development of Postbank and the development of the markets, “said Schenck. The German bank had decided in April to divest itself of its Postbank majority – preferably via an IPO

With the reduction of their own branch network in Germany, the German bank intends to start in the third quarter.. By the end of 2017, 200 of the 700 sites disappear. Co-CEO Juergen Fitschen assured “. The branch network, the physical presence locally will continue to have a very great importance”

JOB CUTS

For Downsizing ran the talks with employee representatives , “We would go out today from the fact that we can begin in the second half in order to implement the first measures, so separate us from the first staff and first branches close,” Schenck said.

For the Management Board falls under the deep red figures from the bonus for 2015th Also, the bonus pool for the employees will be noticeably smaller than a year earlier, Cryan said: “We pay less than our international competitors, but I think most understand that.” He did not give exact figures

. record loss WEAKEN capital buffer

The record loss weakened the capital buffer the bank. The hard core capital ratio, which sets its own capital in proportion to risk positions, fell last year by 0.6 points from 11.1 percent. Cryan confirmed yet, there is no need for a capital increase. Equity is an important buffer for times of crisis. Since the financial crisis overseer worldwide have increased the requirements for massive. The German manufacturer has come in 2019 to a rate of 12.25 percent.

 

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