The deep case of the German Bank

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The deep case of the German Bank

The Deutsche Bank needs about seven billion write off, and weakens even in your core business. How it better should be, at the presentation of the balance sheet is not really clear. From Frankfurt Henrik Böhme.

It is still worse. A Surprise it was not more, what the Deutsche Bank in Frankfurt to announce had. Before a week had to be Germany’s biggest money home in an extraordinary message about the largest loss in the history of information: 6.7 billion missing in the cashier. Such, so-called Gewinnwarnung had the markets expected, is also the head of the Bank, John Cryan (in the article), had already in the autumn of of which spoken, that it is a miracle borders would be, if you are still somehow a better result would come. But with such a thick hunk had really no one expected. For comparison: In the year prior to that, after all, still a Plus of 1.7 billion euros in the books.

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Weak Core Business

In the past the Figures presented come again 100 million on the loss on it, so that is a Minus of 6.8 billion euros. But the really alarming news is that the Bank will not once more on your core business leave: The investment banking generated a loss of 1.2 billion euros. Bank chief John Cryan said that, “in the fourth quarter a bit of Momentum in the commercial transaction of” lost ” have. Although I consciously decided, of some capital-intensive (and risky) business segments, to retire. Also would the core business of trading interest rates and currencies strong. But: “We have in Equities lost ground. We are committed in our employees in Research and Sales to invest to win back market share.”

Bank needs money

The solves however problem not really: The German Bank loses with every day market share in comparison with their main competitors, which are mainly located in the USA. You must, however, urgently to earn money, because it still puts the Bank in a wave of litigation. Since 2012, the Bank had a total of EUR 12.7 billion for settlements and fines to spend, in the last year alone, 5.2 billion. For the current year, wanted John Cryan no Numbers to call, but hopes that less will be as of 2015.

In addition, costs of remodeling, the John Cryan and his colleagues on the Board of the house have enacted a lot of money. Solely for severance pay and the Like, will be around one billion euros has been budgeted. Added to this is the renewal of the computer systems, apparently in a stone-age condition. So for example, the number of operational systems by 2020 from 45 to four reduce. The is things now Stand alone 800 million euros.

The Home Market Of Germany

John Cryan and be still with the current Co-CEO Jürgen Fitschen tried to use optimism to spread. Fitschen, in the summer from the Board to excrete, stressed once more the solidarity of the German Bank’s home market of Germany. Here if to the Bank for entrepreneurs and companies, even for Startups. Who is the good-old-house Bank principle, of wool, of the will with the German Bank.

Cryan explained what you since the summer – since he had the Job taken over – have done, to get back in the track to come. Business units were restructured. Special decision-making bodies outside the Board-operated, there would be no more. The sale of the problematic stake in the Chinese Hua Xia Bank was practically under one roof. You come in the planned sale of Postbank ahead, with Finance Director Marcus Schwenck limit had, that this view of the market environment, the delay might be. You need just for this great transformation, said John Cryan, “time, determination, and patience”. But this time, the Bank has apparently not. Even during the press conference, slide in the share price even deeper in the basement close to a Seven-year low.

“Cold-He Became A Fan Favorite”

When asked whether he is only the renovators of the Bank or is it also a Vision I have, replied John Cryan with a Smile: the other day he had a Zeitungsschlagzeile read it as “ice cold he became a fan favorite”. He hope, his wife did not read. And he also hope that he “have a little Talent to run a business”. It was in these times with Milliardenverlusten, with layoffs of thousands of employees, is not always easy, each day with a good mood to go to work. But he saw “light at the end of the tunnel”, he often hear in conversations with customers, what is the value of the Bank have for you.

That it is difficult, that confidence of investors back to win, Cryan, however, also aware. A dividend will be at the earliest 2017. But perhaps the Bank has 2106 return a profit to identify. However, the austerity policy of the Bank attack, because of the many investments that are necessary by savings elsewhere will be financed. A Post: The Executive Board, Cryan and Fitschen, including, for the previous financial year, no bonus payments.