The times, in which Deutsche Bank wanted to turn the great wheel are over. Back to the roots, is the new motto. The Plan is radical, a guarantee of success, there are, says Henrik Böhme.
It is like in real life. Before it is, perhaps, better, is it worse. This applies also to the German Bank. Germany’s money, house number One has caught up to the big blow out, so that the Suffering of the Bank has finally come to an end. Because the image that this once proud house, with 149-year-old – full of history, has in the last few years, it was a picture of misery. In order to save the patient, maybe, but still, not prescribed for more than a year, acting head Christian Sewing to the house for an emergency surgery, because cosmetic changes are far from sufficient.
It is, of course, that the Bank for the past year had for the first time after three years without a win, once again money in the cash register left. And in the first three months of the current year, a Plus stand. But the 200 million euros are really ridiculously small compared to the competition, especially from the United States. In the second quarter, you would have earned a little money. However, the large tag makes, the first, to destroy everything. Because of the removal of 18,000 Jobs, primarily in investment banking this is a hard cut initially costs a lot of money – the Bank estimates the 7.4 billion Euro. It is therefore clear From the small gain for a big loss, namely 2.8 billion Euro in the second quarter.
Henrik Böhme, DW-business editorial
Risks are outsourced
It is foreseeable therefore, that the Bank will achieve throughout the year, hardly a profit. The shareholders have also to suffer more, for this and the next year the dividend is to be deleted. For this you get a further capital increase; this is never a welcome measure for the shareholders, because the value of the share will be diluted. In addition, the Bank has begs its shareholders in the last few years, often enough. In total, for 27 billion euros of new shares out of the quake have been brought, it has: Nothing.
Sewing is Introduced and takes the necessary money out of the equity, with the exception of the Bank must make it clear, as others hold more, because it continues to be one of the systemically important money houses in the world. But at the same time risky papers to be in large-scale outsourced to: Deutsche Bank from a Bad Bank, where they can unload their garbage. A fifth of the total liabilities of the Bank plus the so-called “risk weighted assets” (you could also say: the ingredients for the next world financial crisis) to a value of 74 billion euros are to be stored.
Farewell from the Champions League
Farewell to the Bank of large Parts of investment banking, only the parts are to be continued, where they have been more or less successfully. But from the stock trading and trading in interest rate products will pull the Bank back. This is an admission of failure, they wanted to make but it is precisely here that the Wall Street banks to the competition, what is crashing failed. At the same time, it strengthens the banks, the earn really good money. The banks-Champions-League says goodbye to the German Bank today.
In the focus companies are now and private customers in the back, where it is already a cause for concern when Sewing says: “By aligning the Bank on your customers, let us return to our roots.” What were aligned with the business in the past years, then? They had forgotten in the Frankfurt twin towers, what they are for? And if Yes, why it has taken so long until it has a noticed? What have actually made the boards all the time?
How long this Time holding it?
Sewing gives himself and his team three years time for the conversion. Starting in 2022, the Bank will radiate back to its old glory, wants to cut the excessive costs clearly, a modern IT infrastructure and a lot less people than today. This should not be easy, because on the German market, the savings banks and Volksbanken have ridiculed (for a long time because of boring and unsexy) to successfully broad. And it will not be easy, as long as the European Central Bank will continue its zero-interest rate policy – it doesn’t look like it would change this in the foreseeable future.
Yes, it is a radical cut, but it was also urgently needed. It could be a restart to a new Deutsche Bank. But the employees have to follow suit; employees had to suffer for years under the constant search for a new strategy. And it must pull in the customers. Just because a stick the sign “Everything is new” somewhere on it, it does not mean that companies or private people, disappointed by the German Bank had been averted, with enthusiasm to return. Some will ask the question: How long will it hold this Time?