The Deutsche Bank has decided on a radical austerity course. The world traps one in five jobs to the victims. Through internal restructuring, the Bank intends to come out of their crisis – after another loss.
Now it’s official – the German Bank with a rigorous savings and retrofit program is imminent. On Sunday, the Supervisory Board of the money house has decided in the next three years, 18,000 Jobs to reduce. Since a few days, there have been rumours that a clear cut is planned in this size. Currently there are 92,000 employees worldwide are working for the credit institution, by 2022 there will be around 74,000. According to information from the employee side, are to be dismantled in Germany alone, between 6,000 and 10,000 Points.
In order to become more profitable again, to the staff, the adjusted cost of removal will fall to about six billion Euro to 17 billion Euro. Last year, several thousand had been deleted in the group. A few days ago, it was also known that the Integration of Postbank of around 2000 Points in the Bank will disappear.
As expected, the Bank plans in the Wake of its realignment, also great tags in the group. It hits here, especially the investment Bank. The Institute has already announced on Friday the withdrawal of the responsible Board, Garth Ritchie,. Deutsche Bank head Christian Sewing is in charge of this Segment in the future, making it the chief thing. For investment banking, trading with securities and foreign currencies of all kinds, as well as the management of corporate acquisitions, mergers, and stock exchange include traditional courses.
Deutsche Bank head Christian Sewing in may at the annual General meeting
The Deutsche Bank wants to pull in from the stock trading business. The trading in interest rate products, such as bonds, is to be subjected to downsize. It will also receive a new name and cut: Under the Heading “business Bank” will bring together the portfolio in the future, the business with corporate and commercial customers; which previously lay in the field of Private and corporate customer banking. In addition, the transaction Bank a is divided into the new area. Which is, among other things, responsible for global payment transactions, but also securities and credit transactions for corporations, financial institutions and other large customers.
Bad Bank decided to
The money house wants to melt its capital cushion in the future, it is a hard core capital ratio of at least 12.5 percent of the goal, after so far, at least 13 per cent were not pursued. Deutsche Bank sets up an internal Bad Bank, balance sheet handle items that originate from the fields of business, to be abandoned or reduced in size. It will include a volume of 74 billion euros of balance sheet risks – about a fifth of the total stock.
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As a result of these harsh cuts, the Bank expects for the coming year, a loss in your balance sheet. Because such a drastic reduction of personnel costs plenty of money, because of the termination of employees who deserve to be baited with severance pay. Loads of 7.4 billion euros, the Institute looks to 2022, due to all the construction plans to come to you. In the current second quarter of this year, the Bank will write to expected to be a loss of 2.8 billion euros, after taxes. In the past year, the Bank had, after three years of losses, rich the first, albeit modest, recorded in the profit.
Also for this reason, investors from the papers of the German Bank have fled in the past few years, the paper is on the stock market only around seven euros, before the great financial crisis ten years ago, there were still 90 euros. The Bank is planning to can the tag measures without a further capital increase through the stage – that’s the good news for investors. However, the Bank will distribute in this year and next year also no dividend to the shareholders.
The tag does not leave the Board without a trace. After the investment Board will be retiring at the end of July from the Bank, leaving the private customer Executive Board Frank Strauss and the regulatory competent Chair Sylvie matherat, age – the business also. Christiana Riley, Bernd Leukert and Stefan Simon are appointed to new boards of Directors.
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