Deutsche Bank again in red Numbers

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Deutsche Bank head Christian Sewing to bring the money in-house course. The tag costs a lot of money, and tearing holes in the balance sheet. The stock crashes once more.

Deutsche Bank has retracted in the last quarter, because of their group tag again a loss. The bottom line was a deficit of EUR 832 million, as the largest German money house announced on Wednesday. In the second quarter, the institution had made a loss after tax of 3.15 billion euros. “The Transformation is in full swing, with tangible progress on the cost side and the risk of degradation,” said chief Executive, Christian Sewing. The shares in the morning peak to just under seven per cent and dropped back below the mark of seven euros.

The total income of the Bank declined in the summer quarter by 15 percent to 5.3 billion euros. At the same time, costs rose by four per cent to 5.8 billion euros. In all four core areas of business, the Institute earned less than in the prior-year period. Only in the entrepreneurs ‘ Bank, the corporate customer business, as well as the payment of transport services that increased the income. The German Bank made in the last quarter, declines in fixed income trading. However, she took in the Underwriting and Advisory business more.

Deutsche Bank head Christian Sewing at the last annual General meeting in may 2019

Chief financial officer James von Moltke reiterated in a telephone conference on Wednesday that the Bank of 2020, wool back in the black. The Institute is aiming to break even or even a profit in the coming year

A Fundamental Realignment In

The boss of the group Sewing will finish with a fundamental reorientation of the permanent crisis of the Institute. Investment banking, which put the billions in fines, it is strongly clipped. The core of the new Deutsche Bank will be the new line of business: banking, which takes care of medium-sized companies, family businesses and multi-national corporations.

The number of full-time equivalents will decrease by the end of 2022 to approximately 18,000 worldwide, of 74,000. Still, it is unclear how much of the removal hits the home market. Recently, Germany’s largest money house had declared, as soon as decisions have to be liked, you would be discussed first with the workers in the affected areas. In the third quarter, the number of full-time jobs dropped according to the figures available for the first time since the Takeover of Postbank in 2010 to under 90,000 in. The end of the quarter, there were 89.958, for example 4750 less than in the prior-year period.

Also total of the year with red Numbers

Up Sewing for the harvest of the fruits of the group tag, it will still take a while. Because of the billion cost for the conversion, the total year 2019 is likely to end up with red Numbers – it would be according to the latest Figures of the Bank, the fifth loss of the year for in a row. For the total year 2019 analysts in a Bloomberg expect-an Overview according to a loss of approximately € 4.3 billion.

Add to this the interest rate downturn, which impacted the industry as a whole. The European Central Bank (ECB) had only exacerbated, more recently, the criminal interest rate, the banks must pay if they Park money at the Central Bank. Since the interest rate environment have dampened compared to the second quarter of 2019, and work with the Bank on a number of measures, such as price adjustments on deposits and the introduction of account maintenance fees, support, the Institute said.

ul/hb (rtr, dpa)