Financial Results
Deutsche Bank Co-CEO Seeks To Calm Employees' Nerves As Shares Are Hit
The co-CEO of the lender has sought to calm fears about the financial health of the bank.
The co-chief executive of Deutsche Bank has
insisted that Germany’s largest bank is “absolutely rock-solid”,
coming in the wake of a slide in the lender’s share price.
John Cryan gave the message to employees in a letter, media
reports said that were later confirmed as accurate to this news
service by the bank.
Cryan said he is not concerned about the bank’s ability to meet
legal costs. While Deutsche Bank will “almost certainly” have to
add to its provisions for legal costs this year, the firm has
already accounted for it in its financial planning, he said.
“I am personally investing time to resolve successfully and
speedily open regulatory and legal cases,” he wrote. “I want to
remove the uncertainty among staff and in the market that these
cases cause. A small group of senior people, led by me, will
focus on this. For everyone else, we ask you to continue to focus
on our clients and on the implementation of our strategy.”
Over the past 12 months, shares in the bank have fallen by almost
half (from 10 February to yesterday). Yesterday, shares were
quoted down 4.96 per cent from the open, at €13,05 per share
around early-afternoon trading in Frankfurt.
At the end of January, Deutsche Bank, which operates in a number
of regions, logged a net loss of €2.1 billion ($2.28 billion) in
the fourth quarter of 2015 and a full-year loss of €6.1 billion
with restructuring and other costs pushing figures into the red.
Results were more encouraging in the Frankfurt-listed bank's
wealth and asset management arm, however, where it reported €1.4
billion of net revenues in Q4 2015, up from €1.2 billion in the
year before. This segment of the bank had €1.1 trillion of
invested assets at the end of last year, a gain of 8 per cent
from a year earlier.
After seven consecutive quarters of net new asset inflows,
however, Deutsche's wealth and asset management arm suffered a
net outflow of €4 billion in Q4, verus a net inflow of €10
billion a year before.
