Deutsche Bank writes 6.8 billion loss

0
332

Banks

Deutsche Bank writes 6.8 billion loss

The largest money home in Germany in the last year in deep red Numbers slipped. Also, 2016 will be a tough year for the German Bank and their shareholders.

The core business of the German Bank is at the end of 2015 burgled. The investment banking business delivered in the fourth quarter of a pre-tax loss of just under 1.2 billion euros, as Germany’s biggest money home announced on Thursday. The income of the division decreased by 30 percent to 2.1 billion euros. The Bank referred to valuation adjustments in trading in fixed-interest securities and a difficult market environment.

Also in the group, 2015-red Numbers are to be recorded, is already known since a week. The new CEO John Cryan, the Bank once again an expensive conversion prescribed. Also consume billions of dollars of provisions for legal disputes at the balance sheet.

The editorial recommends

(26.01.2016)

The largest German money home is at a historic low point reached: record loss and the wave of lawsuits – and now a downgrade by a credit rating Agency. Five questions and a little bit of hope. (25.01.2016)

2016 is the reconstruction further

The Executive Board of Deutsche Bank asks the shareholders the conversion of the Institute to be patient. For the current year, the Bank still hardly measurable, such as from an analysts presentation from the Thursday shows. “2016 will be the culmination of the restructuring,” it said there. The savings ranged only expected to the pressure cushion, the adjusted costs would not decrease. Deutsche Bank calculated in 2016, with restructuring costs and severance payments of approximately one billion euros. Litigation is likely, the Institute is still a burden, even if Chairman of the Board John Cryan of the cost under the level of last year looks.

The allowance for credit losses for bad loans, because of the strong economy, most recently at historic lows, was, will rise. In the crisis-stricken energy sector was the Bank, however, less strongly committed than other banks, and the commitment were there well secured. But even with the planned shrinkage of the balance sheet will this year not be right to move forward. The expected decline in the balance sheet (RWA) in the removal unit NCOU will due to rising operational risks are outweighed, so that the capital-consuming RWA total stagnation is expected, it is said in the presentation.

zdh/ul (afp, dpa)