New Zealand clients would be serviced from Australia following the closure, which was expected to be completed by the end of next year, she said. “It’s definitely going in the right direction, that Deutsche Bank is rightsizing its investment bank”. Leverage exposure reduction of about €170 billion and Risk Weighted Assets (RWA) reduction (excluding regulatory inflation) of about €90 billion to €320 billion by 2018 and €310 billion in 2020 are targeted. Because we have to run business on the basis that we could encounter stress. In addition, the bank plans to dispose of assets with a total cost base of approximately 4 billion euros and 20,000 jobs over the next 24 months. The bank also aims to fully exit from 10 countries.
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United States authorities are also probing Deutsche Bank over allegations that it helped Russian businessmen close to President Vladimir Putin circumvent sanctions.
Revenues in the third quarter came in at 7.3 billion euros, down 7 percent year-on-year, hit by a 649 million euro impairment on the bank’s stake 19.99 percent stake in Hua Xia Bank. It has paid a dividend every year since Germany’s postwar reconstruction, including throughout the 2008 to 2009 financial crisis. “If he manages to get Deutsche Bank out of the firing line both he and Deutsche Bank won”, Halver said.
The cuts represent less than 15% of Deutsche Bank’s overall workforce.
Of the 9000 internal job cuts, about 4000 will take place in Germany. “My assumption was that as a new broom, you would have shrunk the investment bank more”, said the analyst, questioning why Cryan isn’t making deeper cuts to prime broking, rates and credit, all of which offer minimal returns for the capital invested.
Former co-CEO Anshu Jain resigned in June. Mr. Cryan is due to become sole CEO in May when co-CEO Jürgen Fitschen leaves his post.
Asked about prospects for bonuses for the board in the face of an expected full-year loss in 2015, Cryan said it was up to the supervisory board to decide on payouts.
He said it would be “unacceptable not to share a few of the costs that we have suffered” as a “consequence of poor historic behaviour”.
Deutsche Bank is mired in around 6,000 different litigation cases and was fined in May a record 2.5 billion for its involvement in rigging interest rates.
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The investigation, led by New York State’s financial regulators and the Federal Reserve, is trying to ascertain if the bank processed transactions for clients in those countries in violation of USA sanction laws.
