Deutsche Bank’s woes grow with £5.2 billion lossComments Off on Deutsche Bank’s woes grow with £5.2 billion loss
Deutsche Bank has laid bare the extent of its troubles after last week’s profits warning.
Germany’s biggest bank lost €6.8 billion (£5.2 billion) last year, its first full-year loss since 2008, as its investment bank, largely based in London, ran up big losses and it set aside more cash for past litigation issues.
The shares fell 2% and have dropped by a third in the past 12 months.
New chief executive John Cryan, who took over from Anshu Jain in July, admitted that the share price was a concern but said he could not be seen to be trying to manage it and instead had to get on with restructuring the bank to improve it.
“We know that periods of restructuring can be challenging,” he said. He also told analysts he did not see the bank needing to raise fresh capital.
Deutsche bankers in London are braced for sizeable cuts to their bonuses this year after Cryan said he couldn’t see why bonuses made bankers work any harder.
But for 2015 the average pay for employees in the investment bank actually ticked up slightly €452,000 to €469,000, reflecting 2014 bonuses.