Monday, April 27, 2015

To shrink Course: German Bank will close 200 stores – tagesspiegel

09:23 clock Simon Frost and Carla Neuhaus

Update Because of transgressions of the past winning the Deutsche Bank drops significantly. Now she saves a vigorous: 3.5 billion euros – a year. How many jobs does it cost, management still retains for itself.

3.5 billion euros in savings – a year. On Monday morning, the German bank comes with details of their future program from cover. As the largest German bank notifies in Frankfurt am Main, is to a large part be achieved through “efficiency gains”. The balance should be achieved, where the bank “withdraw from unprofitable businesses, optimizing its geographic presence and reduced its branch network” is

In plain language this means that. The retail business is clearly evaporated. 200 of the 700 stores not close in the next two years, however, the digital offering expanded significantly by 2017.

How much are the 3.5 billion annual personnel costs, how many places so omitted, was first known.

Up to one billion euros it costs reportedly to bring the bank into the digital present. Given the huge amount probably a trend that the management of the money home to the two co-heads of Anshu Jain and Jürgen Fitschen has overslept. Alone in the retail business are to be invested in digitization by the end of the decade, 500 million euros – for example in computer-based consultation with less personnel expenses. Or, to remain in the language of the bank: “Development of new customer offers.”

More personal attention than in the past, however, it should be more for customers with a few euros. Jain and Fitschen want the asset management – a segment in which the competition has recently invested consistently – expand: up to ten percent annually. For this purpose, the number of customer service

would increase in core markets by 15 percent and developed new products.

In daily business, the Bank is strong

Seven years after the outbreak of the financial crisis fight Jain and Fitschen still with the burdens of the past. Because the two heads of the Deutsche Bank had to cover litigation additional 1.5 billion euros in the first quarter but little is left to the bottom line. Is shown by the figures published by the German Bank on Sunday afternoon: The profit after tax was in the first three months just at 559 million euros. A year ago, the profit was been twice as high.

The business is actually quite well again. Just earned investment banking the German bank well. The capital market segment – ie business with bonds, derivatives, IPOs and mergers – has contributed 643 million euros to profit before tax. This means that the German bank is strong precisely in the division, which is the main reason why the lawyers of the house currently have so much to do and the litigation costs continue to rise. Only last week, the bankers had agreed with the authorities in the US and the UK at a record fine of 2.5 billion euros. The reason: the merchant bank to have manipulated important reference interest rates as the Libor

Jain and Fitschen would leave all the well-liked as quickly as possible behind.. They tried on Sunday to confidence. Your institute was “much stronger today than at the beginning because of the way 2012″ – in other words at the time, have taken over as the two management of the Group of Josef Ackermann. The shareholders are the work of the duo, however, not been satisfied. For important goals, the Jain and Fitschen had set itself three years ago, they have not reached. So the boss for this year had originally sought times a return on equity of twelve percent. In the first quarter of this important key ratio – which shows how well the equity interest -. A mere 3.1 percent

The German bank separates from the Postbank

Jain and hinge plates but are optimistic. And confidence they will need. Finally, they have big plans: The CEOs want to set up the new German bank. The house should be profitable again and keep up with the competition abroad. On Sunday, the two said, “We are starting the next phase of our strategy from a position of strength.” Just recently have Jain and Fitschen up to the Supervisory Board on understanding the new concept for the future of the house.

It is also clear: The Group separates from Postbank. At the annual meeting of the daughter in August forced settlement (squeeze-out) of the remaining shareholders to be decided. By the end of 2015, the bank wants to be the sole owner of Postbank. It is possible to compulsory settlement by the recent purchase of a stake in Postbank on the market. Thus, the proportion rose to 96.8 percent last and thus climbed over the important for a squeeze-out 95-percent mark. By the end of 2016, the German bank will then bring the daughter back to the stock market and reduce their share while less than 50 percent.

Also, the investment banking is expected to shrink. Rehabilitation needs arise, especially in the business with hedge funds.

Some investors is the conversion not radical enough

The new strategy is an incision. It would, however, can come harder. Because despite Schrumpfkur the Group still on the model of the universal bank. This means that the German bank will operate in the future both down to earth branch business and the partially risky investment banking. Many of the bankers in the house had the desired way. Some investors do not go far enough, however this step. “That’s not the big hit, the international capital market has been expecting,” said Klaus Nieding of the German Association for the Protection Securities (DSW) on Sunday.

Many investors would have preferred it if the Bank had completely separated from their retail business. This option also have played through the Executive Board and the Supervisory Board. At the end shall they have come to the conclusion that it was not socially enforceable. Finally, there are the branches representing the bank in Germany to the outside. If they were completely abolished, Jain and Fitschen would have to ask how the German German Bank for still was. This argument did the two CEOs probably go out of the way.

Three years ago, the Bank has presented once a new strategy

Aktionaersschuetzer Nieding criticized that the two bankers are so indecisive. It was only when they took office three years ago they finally presented a new strategy. But because they could not keep the goals, now comes the next turn. Nieding therefore asks in the direction of the two bankers: “Which half-life have actually statements to the strategy?” In his view, this is especially true for dealing with Postbank. Years ago, the Group would have explained the importance of Postbank for them.

Josef Ackermann had bought the smaller branch banking seven years ago to better balance the investment banking and private banking. Until recently, Postbank’s parent company always paid a profit: Last year there were at least 457 million euros

The fact that the German bank to now separates yet from the smaller institution, including but not because of the numbers.: The company wants to reduce its total assets. This should help to better deal with the more stringent regulation. Because the house had recently more and more equity in times of crisis to travel, and that has the business travel increasingly narrowed. (AFP)


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