Tony Webster
Deutsche Bank will also sell assets of approximately € 2 billion over the next two years. In particular, the bank will put on sale a minority stake in Deutsche Asset Management. This step is supposed to give the financial institution more "operational independence". The bank is also going to reduce costs from € 24.1 billion to about € 21 billion by 2021.
Deutsche Bank decided to keep its retail business Postbank, which was previously planned to be sold. It will now be combined with Deutsche’s business to work with private and corporate clients, creating a leader in the retail market in Germany, said the credit institution’s CEO John Cryan in a letter posted on the bank's website. The combined Corporate & Investment Bank will include a number of corporate finance divisions, as well as operations on the global markets, which allow the bank to better serve customers.
As part of the reshuffle, CFO Marcus Schenck will become the bank’s Deputy Head to take charge of the united investment and trade direction. Christian Sewing will become second Deputy CEO. According to analysts, these two leaders are now the most obvious candidates for the post of CEO.
Cryan previously wrote in a letter to employees that Deutsche Bank has left behind "the worst crisis in decades". Deutsche Bank "has taken a decisive step forward to become stronger and grow again", the organization said. Many of the announced steps are actually cancelling decisions taken during the previous reorganizations.
As reported, the bank has reduced the net loss in 2016 to € 1.4 billion from € 6.8 billion in the previous year; revenues decreased by 10% up to € 30 billion. Late last year, DB has reached agreements on settlement of claims of the US and UK regulators in the framework of which the institution will pay about $ 8 billion. The bank's shares were plummeting in the last year because of concerns of investors about fate of the credit institution and non-payment of dividends. However, Deutsche Bank’s shares rose almost 2 times during the last 6 months.
Analysts believe that Deutsche Bank has to increase its capital by € 5-10 billion to meet all requirements for capital adequacy and to create reserves in case of new lawsuits and fines. Deutsche Bank has nearly 2,660 branches in more than 70 countries, of which around 1,780 are located in Germany.
source: fortune.com
Deutsche Bank decided to keep its retail business Postbank, which was previously planned to be sold. It will now be combined with Deutsche’s business to work with private and corporate clients, creating a leader in the retail market in Germany, said the credit institution’s CEO John Cryan in a letter posted on the bank's website. The combined Corporate & Investment Bank will include a number of corporate finance divisions, as well as operations on the global markets, which allow the bank to better serve customers.
As part of the reshuffle, CFO Marcus Schenck will become the bank’s Deputy Head to take charge of the united investment and trade direction. Christian Sewing will become second Deputy CEO. According to analysts, these two leaders are now the most obvious candidates for the post of CEO.
Cryan previously wrote in a letter to employees that Deutsche Bank has left behind "the worst crisis in decades". Deutsche Bank "has taken a decisive step forward to become stronger and grow again", the organization said. Many of the announced steps are actually cancelling decisions taken during the previous reorganizations.
As reported, the bank has reduced the net loss in 2016 to € 1.4 billion from € 6.8 billion in the previous year; revenues decreased by 10% up to € 30 billion. Late last year, DB has reached agreements on settlement of claims of the US and UK regulators in the framework of which the institution will pay about $ 8 billion. The bank's shares were plummeting in the last year because of concerns of investors about fate of the credit institution and non-payment of dividends. However, Deutsche Bank’s shares rose almost 2 times during the last 6 months.
Analysts believe that Deutsche Bank has to increase its capital by € 5-10 billion to meet all requirements for capital adequacy and to create reserves in case of new lawsuits and fines. Deutsche Bank has nearly 2,660 branches in more than 70 countries, of which around 1,780 are located in Germany.
source: fortune.com