Thursday, January 29, 2015
The German bank closes the year at surprisingly good. But the numbers deceive: The chiefs Anshu Jain and Jürgen Fitschen urgently need a new strategy and potter feverishly. May soon no stone left upon another.
At first glance, the new year for Anshu Jain and Jürgen Fitschen has started well. The two co-head of Deutsche Bank’s 2014 profit to almost 1.7 billion euros more than doubled. And instead of a renewed loss of their bank has even written a profit in the last quarter. It is a sign of hope in her gentle yet very mediocre record. Three red quarters they have already moved into their term of office. Since almost two and a half years, they are just at the top of the bank.
The numbers can not hide the fact that Germany’s biggest money house urgently needs a new strategy. The plan of the Co-Heads of Jain and Fitschen has barely risen. In 2012 she had competed with the promise to save billions to set up the bank more profitable and more stable. Since then, the bank does have bolstered their capital significantly and disposed of a lot of bad loans and other balance sheet waste.
But the share price lags behind the main US rival. 12 percent had Jain and Fitschen proclaimed the return target. But of that they are miles away. What the bank has saved on costs, it has spent on another site. Therefore, the co-chiefs must now make their own strategy to the test. In the spring they want to reveal. And it could be left on another no stone.
Dark businesses brake profit
So far, the weal and woe of Deutsche Bank depends of how low and how fast they verprellten for supervisors and can freely buy customers for the numerous shady dealings of their past. Rising legal fees, you verhagelt the balance immediately. Does it run well, the numbers look better, as in the last quarter. The contaminated sites are for the bank become so threatening that Fitschen and Jain have appointed its own board for it. As a troubleshooter Christian Sewing care since January by nothing more than the various scandals of the bank and what they will cost the financial giants.
A lot of these contaminated sites have Jain and Fitschen indeed already been processed. The EU have paid the end of 2013 for the years of manipulation of the Libor interest 725 million euros. But the fines in the US and UK are still pending. “The burden of litigation remains high,” admitted Jain on Tuesday in a conference call. “It will be a challenge even in 2015.”
The really big chunks are yet to come. The currency exchange rates is to have the bank manipulated as one of the biggest currency trader. The guards in Washington and London have been sentenced to a penalty $ 3.4 billion five other banks about it. Also on the German Bank has a million penalty. It is not possible to say when the individual cases could be shelved, Jain said.
In addition, the Munich prosecutor hinge plates and some ex-board members indicted for alleged procedural fraud in the church affair. The court should allow the prosecution, the trial is likely to begin later this year. Then the German Bank CEO
“inevitable cost reductions”
must be in court. The bank also inserted in the profit squeeze. The European Central Bank (ECB) flooded the markets with money, pushing interest rates in the basement. With stable areas such as retail banking, the hinge plates and Jain would really like to expand the bank hardly earned money. Your one term goal, retract three billion euros before tax with private customers, the co-leaders have missed by a mile.More about
“Then there is only one possibility: You have to reduce costs, “Fitschen has in a recent interview with the” Welt am Sonntag said. ” Further cost reductions are “inevitable”. Not only at Deutsche Bank but in the entire industry. That is the worst case dismissals. Or a sale of business parts.
The German bank is probably in front of a group restructuring. Chief Financial Officer Stefan Krause hinge plates and Jain parked for he cares since November as chief strategist for the new master plan. There is evidently no taboos: The Bank should also play through a sale of Postbank. What’s next, Jain and Fitschen have to say soon. In March, they present the Annual Report. It would be a good time to unravel the mystery.