Deutsche Bank, one of the largest multinational financial institutions, recently reported yet another net loss – to be exact, the third in the last three years’ annual reports.
Experts believe that the three central causes for this alarming loss are tough economic climates for the bank to succeed, less bank revenue from overseas customers after recent tax reform in the United States of America, and a generally difficult fiscal fourth quarter for all banks across the European mainland.
Chief Executive Officer John Cryan Had His Say
Chief Executive Officer of Deutsche Bank Mr. John Cryan shared that he and fellow bank executives “are firmly on the path to producing growth and higher returns with sustained discipline on costs and risks. . . We have made progress, but we are not yet satisfied with our results.”
It seems like Mr. John Cryan is not acting in line with his words, as Deutsche Bank is projecting expenses of 23 billion euros, a projection that’s up one billion euros from 22 billion in total expenses.
Ten months ago, Deutsche Bank declared that it was merging its retail banking unit, better known as Postbank, with its very own consumer bank. Executives also shared that they planned on selling a portion of its asset management division to more suitable investment managers and financial advisers.
Representatives said earlier this week that the bank’s integration with Postbank was right on schedule, although its asset management division still hasn’t been sold yet. Those same reps stated that it would sell a hefty portion of its asset management division “in the earliest available window.”
Reform Would Unarguably Take A Long Time To Be Carried Out
Many people are confident in thinking that a reform of Deutsche Bank would take years to carry out, not just several months.
John Cryan could be on the proverbial hot seat, as many experts and news media members believe, as he’s experienced financial losses in each of his three years with the multinational banking organization.
Deutsche Bank’s annual loss was marked down at 2.19 billion euros, and its revenue dropped an alarming 19 percent, down to just 5.7 billion euros, which is considered very low for a global banking institution.
Earnings reports published by the bank after the year’s embarrassing performance was over were worse than what analysts had predicted, as they, in general, only predicted a loss of 1.95 billion euros, from revenue of 6.2 billion.