Monday, April 27, 2015

New Strategy – the German bank wants to save – Sü

  • The German bank will close in the next few years its been about 200 700 own stores.
  • In order for the Frankfurt bankers want to save an additional 3.5 billion euros a year.
  • At the same time, the Institute
  • The German Bank announces additional investments in digitization.

What the German bank plans

The German bank will be more profitable – and shrink it. As the Bank’s new strategy seems that the two co-heads of Anshu Jain and Jürgen Fitschen presented on Monday morning in Frankfurt. Operating costs will be reduced annually by 3.5 billion euros. For this to be closed just under a third of its branches. At the same time, the investment division of the bank is even stronger withdraw from less profitable areas of business and reduce its balance sheet by about 200 billion euros. To achieve the savings, the German bank expects one-time cost of 3.7 billion euros.

German bank Why did the German bank shrinks

Farewell to the Postbank and 200 own stores less: The German Bank reduced – even to the requirements of regulators and policy meet. Paradoxically, the Institute looks so almost as it was before the financial crisis. Comment

The closure of 200 of the 700 stores so far by the year 2017 make up about 40 percent of the savings. The other 60 percent of the Institute aims through efficiency improvements – such as a stronger digitization of business, but also job cuts – reach. How many jobs are concerned, the Bank was initially open. “We have not made any decisions regarding personnel policies,” Fitschen said. Talks with the works had not yet begun.

the end of 2014, the Group had worldwide good 98 000 full-time positions. From seven to ten countries, the Bank also intends to withdraw in whole or in part, the presence in five European markets should remain against it.

What does the change of strategy for clients

The closure of the branches initially hits especially those residential customers who do not live in big cities. Prior to Deutsche Bank have already Commerzbank, savings banks, cooperative banks and – announced Hypo Vereinsbank thinning its branch network – the hitherto most radical of all. Overall, the number of branches of banks has more than halved in recent years, currently at about 31 000 branches. It is disputed whether this is the right way for banks in the long term, because two-thirds of customers to be close to a branch is still important for selecting their own bank.

German bank admission of failure

The German bank separates from her daughter Postbank. It is the biggest change in direction for years for the Institute – and shows that the double peak Jain and Fitschen has failed. The loser of the great change is now still another.

In order not to lose customers and generate new revenue opportunities, wants the German bank in the coming years, up to a stuck billion euros in digitization. To drive foot traffic it is the Group while probably not a priority. That is one of the objectives to develop asset management for wealthy clients and transaction management for large companies.

How Postbank continues

In the night of Saturday had announced the German, her daughter Postbank after only seven years repel again. Now there was this more details from Frankfurt: Accordingly, the yellow-blue daughter to go with around 14 million customers by the end of 2016 back to the stock market. It is planned as a first step that the German bank withdraws to a position as a minority shareholder. In the medium term it will be completely off.

Now, the German bank also announced its intention to conduct an IPO without the remaining minority shareholders of Postbank. Therefore they should be forced to end the year on a forced settlement from the company. The German bank has the right to do so, because they now holds 96.8 percent stake in Postbank. The previous exchanges retreat, the German bankers hold but also open to the Postbank sale as a whole to a competitor, which would more feasible without Listing. The price of Postbank shares had been inflated by speculation on a high severance ..

Why the change of strategy is necessary

The German bank responds with its strategy shift to more stringent requirements of Supervisors world, for example, more and more capital for investment demand. She wants her debt to GDP ratio is now significantly improve in the medium term. The ratio of equity to total assets should climb to at least five percent. The end of March, it was 3.4 percent. That is, 100 euros in the balance sheet stood at EUR 3.40 compared with its own resources. “We are confident that the German Bank 2020 better capitalized and will be less in debt,” explained Fitschen and co-chief Anshu Jain. The profit targets, however, were screwed down: Nevertheless, the Board still holds a return on equity of “more than ten percent” after tax for realistic

Your Forum Postbank separation: Will the German Bank so profitable?

The German bank ailing for years – and now has its consequences: she wants to separate from its majority stake in Postbank. Can Germany’s largest bank as the crisis? your forum

Since the inauguration of Anshu Jain and Jürgen Fitschen as a double peak at Deutsche Bank 2012, the Institute has been the annual reduced costs by 3.3 billion euros this year are to be acquired an additional 1.2 billion euros. Throughout the past year, the operating costs of the bank stood at € 27.7 billion.


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