Thursday, February 2, 2017

Deutsche Bank: John Cryan tried it with a farmer’s wisdom – THE WORLD

DDeutsche Bank chief John Cryan is actually not a Manager, it is of the essence in the Public. However, today the Briton must be alone on the stage. The hands are in front of him on the console, the forward-stretched arms, he pressed to his body, as if he wanted to make himself smaller than he is.

He speaks very slowly, but in nearly accent-free German: “I don’t want to talk around it,” he says and pauses for a moment: “There were phases in the year 2016, in which we were under considerable pressure.” However, the past year has also been very encouraging.

The vast majority of customers remained in the institution faithfully and the money home to the resistance to become capable, said Cryan. Deutsche Bank have risen to be more liquidity reserves and the capital ratio. Also the mountain of Contaminated sites that lie dormant in the internal Bad Bank, reduced since to a large extent. The Bank believes that thanks to modern IT now for digital, less complex and safer – also in terms of financial crime.

Cryan is trying to convey a clear message: That you have learned from the mistakes of the past. However, the necessary remodeling was expensive and depressed the yields. Deutsche Bank closed the last financial year with a loss of billions: The Minus amounted to around 1.4 billion euros. 2015 was to run up a deficit of 6.8 billion euros – the largest in the history of the Institute.

Cryan seeks an agriculture comparison

As the reason for the re-billion loss called Cryan charges for restructuring and severance payments, litigation, and impairment losses in the amount of 4.3 billion Euro. Revenues for the full year shrank by ten percent to around EUR 30 billion.

Only a few weeks ago had agreed to the German Bank in a dispute over rotten mortgage-backed securities with the US authorities for a settlement. The agreement provides for a penalty payment and compensation of a total of 7.2 billion dollars (6.8 billion euros). In the money-laundering scandal in Russia, the Bank agreed with the Supervisory authorities in New York and London, a comparison that is a total of around 600 million euros.

for More great events are still open. The Bank is now, however, that the expenditure for Contaminated sites have reached the peak. The provisions for scandals added up to the end of the year, to 7.6 billion Euro, of which 4,7 billion are spent or less.

Finally, Cryan admitted that he was with the Figures happy, of course. “But let me take a picture of the agricultural efforts,” he said, and caused Amusement. “Yes, you heard right,” he said. “First we must sow if we want to later retract a greater harvest.” He urged patience. Still, the Bank was clearly in the stage, in which sown.

speculation about the state of the help made took the round

As Cryan in front of more than one and a half years in the top post, it looked not good at all for the German Bank. In the following months, it was getting worse and worse. The once-proud institution of the decline of threatened. The share price fell dramatically in value. The Briton was not quite innocent: With his unsparing honesty, the demo he tivierte his employees and scared her off the investors.

Land in sight during the reprocessing of the litigation

The Deutsche Bank in the money laundering affair, with a penalty equivalent to 587 million euros, with a blue eye. The stock responded positively. Stock market strategist Ulrich Hanke with the prospects.

source: N24

With a new communication strategy, he managed to pull the ripcord and to appease the markets. However, the peace lasted not for long: In the autumn of last year, the downward trend continued: The Deutsche Bank disappoint in the stress test in a simulated crisis scenario, the core tier I capital ratio of the Bank dropped to 7.8 percent. This ratio measures how big is the equity buffer of a Bank in relation to the in the balance of risks held.

the rumours that a hedge Fund would deduct money because of the Institute’s 14 million penalty to the U.S. Department of justice threatened, oppressed the paper deep into the Minus. The share price fell in the meantime, under ten euros. A historical Dimension. So deep are the papers of the money house, were never. The position of the Frankfurt’s even called a number of Dax Board members on the Plan to strengthen the Institute of public the back. It was even speculated about the state aid for the German Bank.

Cryan, the Save is too slow

in the Meantime, the worst is over: The stock is now trading at just under 20 euros. It almost seems as Cryan had overcome the crisis. But only at first glance: in Front of the boss of the group, a long distance is still the degradation of work: The Institute must become more efficient, the complexity of losing and unprofitables business to give up. This is painful. In investment banking, there is a need for strong cuts in the private customer business is to be closed every fourth branch. A total of 9000 of the 100,000 Places in the group list, thereof 4,000 in Germany.

And Cryan presses on the pace: He signaled that the Save previous to slowly. “We want to be degradation when you set even more ambitious,” he wrote in a letter to the staff. This is in the sense of the investors. Nevertheless, they remain cautious.

The question of whether the Institute is asking the markets for money again, hangs like a sword of Damocles hanging over Deutsche Bank. The planned sale of Postbank was mainly for the purpose of to release capital. Now this is possibly taken back, because he was from the beginning, as a strategically questionable, and the hoped-for price is likely to be achieved. Instead, it is probably considered to bring part of the Fund subsidiary of the stock exchange. But will that be enough?

Cryan would have to create it, that his Institute earned sufficient money. And that is in the low-interest-rate environment is no easy task. In the eyes of many investors, he has still provided no convincing strategy of how he wants to lead the Institute to its former strength. He is considered more of a restructuring than as a Visionary. Some observers suggest, therefore, that only his successor will reap the fruits of his cleanup work.


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