Thursday, January 28, 2016

German Bank asks again to leap of faith – Reuters Germany

– by Kathrin Jones and Alexander Hübner and Andreas Kröner

Frankfurt ( Reuters) – employees and shareholders of Deutsche Bank need the renovation of the Institute a long breath.

After a record loss of nearly seven billion euros in 2015 agreed to the new CEO John Cryan on Thursday on two further crisis years a. “We all know that a restructuring can be very challenging. It takes time, determination and patience,” the Briton said at the annual press conference in Frankfurt. 2016. According to the Group, the highlight of the restructuring, an additional loss is not excluded. Cryan now wants to turn himself in order to evacuate the most important legal disputes such as mortgage lawsuits in the US out of the way. What it also ensures: There are clear signs of slowing in the daily business, especially in once-lucrative investment banking, which posted a billion loss at the end of

It would take Germany’s biggest money home more than ever a reliable source of income to shoulder the heavy burden of scandals and billions of the Group restructuring. But for litigation, the Bank has spent almost € 13 billion since 2012 – and there is no end in sight, as Chief Financial Officer Marcus Schenck said. But Cryan can here no longer rely on the investment banker who in spite of many gamers estates usually were delivering the lion’s share of profits in recent years. Both the bond and equity trading as well as in the traditional consulting business there was last hit. This is not only due to the difficult market environment, which had already shown in the balance sheets of US rival. The German bank, which under Cryans predecessor Anshu Jain wanted to compete with the best in the industry always, admitted for the first time also unusually open a to lose market share in some areas of the capital market business.


On the stock market all came to no good. With a loss of three per cent was the German bank shares as so often in the past few weeks biggest loser Dax. Since Cryans office in July, the paper has lost more than a third. “The share price is also an indicator of the mood in the bank,” Cryan admitted. Many investment bankers are shareholders of the bank. With a market capitalization of just over 20 billion euros, the Frankfurt would be a bargain about the reinvigorated giant on Wall Street. Cryan does not see the German bank as a takeover candidate anyway. “That’s not what we currently spend too much time.” The banking supervisors saw risky mega-mergers very critical.

Cryan acknowledged that many the approximately 100,000 employees were unsettled in the Group. That stems from not only the forthcoming reduction of 9,000 jobs, almost half of them in Germany. The figures are for many who worked hard every day, disappointing. Another damper on the motivation there should be in March when the bonus decision is announced. Cryan announced significant cuts. According to information from financial circles the premiums pot in 2015 has shrunk in some departments by up to 30 percent. At board level, the bonus is even canceled altogether in 2015 after a decision of the Supervisory Board, as Cryan said. For him it was no surprise that he feels for the record loss year but “personally responsible”. Not even at the height of the 2008 financial crisis it had so badly looked. The dividend falls for at least two years from.

Continued …


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