Tuesday , October 26 2021

Deutsche Bank remains in crisis


Frankfurt. (da / reu) It was not a bright light, it shone a little on Friday, but at the end of the Deutsche Bank tunnel – last year 341 million euros earned a financial crisis hit house. For the first time since 2014, there has been a surplus again. Subsequently, the downturn began: losses in 2015 were € 6.8 billion, the highest in the company's history, € 1.4 billion in 2016 and € 735 million in 2017. t

The only pride of the German financial sector and the risk-free flag received a receipt for a change in exchange rates, where growth became the maximum circle and fracture. Only in the US real estate market, nine billion dollars were fired as a result of the mortgage crisis.

Thousands of workers were fired
From the previous EUR 47 billion change in value, the German bank is now withdrawn from EUR 30 billion. Over the last five years, the name has lost about 75 percent, thus significantly more than the weaker performance of the euro area (see Chart).

After years of catastrophe, Joseph Ackermann, the catastrophic duo of Anshu Jain and Jürgen Fitschen and John Cryan Christian, tried to reorganize the bank since last April. The 48-year-old recipe is below cost and unprofitable business areas. Over one year, the number of full-time employees fell by slightly less than 8,000 to 91,700, and by the end of 2019, according to Sewing Data, it should be "well below 90,000". He pointed out that 19 out of 20 legal proceedings in which the Bank was fully or partially involved were resolved. The Board believes that growth opportunities for lending are to private and corporate customers.

However, Sewing recognizes that the Institute is "far from home" where he wants it. In the last quarter, the German bank even turned back red. Particularly weakened fixed income securities trading. Profitability fell by 23 percent. In the banking sector, which includes not only trade but also advisory business in the field of mergers and acquisitions, and customer support for the IPO, for example, revenues fell by more than one billion to about € 13 billion.

The bad picture was a large-scale police in front of the company's headquarters in November. The "Panama Documents" data show that bank employees should help clients create letterboxes for businesses in tax havens and launder money from crime. Bank-Rechtsvorstand Karl von Rohr stressed that the bank or its employees had no evidence of the infringement. So far, Danske Bank has not been involved in the money laundering scandal.

However, at the end of December, the stock price reached a historical low of EUR 6.68. Banks, analysts, some shareholders – the biggest shareholder is just under five percent of asset managers Blackrock – and the German Finance Ministry, according to internal data a few months ago, would have more time to generate turnover. But there is no margin left, a decision on whether the possible merger should be fast.

Fusion simulations
The Federation owns 15 percent of Commerzbank, and therefore does not want to keep silent about the fusion of two German money houses. From this, Deutsche Bank boss Sewing does not want to officially know anything: "We have our plan and we work on it, I don't worry about anything else." Andreas Treichl, CEO of Erste Group, recently proposed to merge Deutscher Bank and local savings banks, but he saw that sales opportunities were minimal.

Not only in the German Ministry of Finance, but also in the Ministry of Economics, there are simulation games about the future of the bank. According to Welt's report, Head of Department Peter Altmaier wants to support strategically important corporations with targeted national measures. These include Industriemulti Siemens, BMW, the car manufacturers, Daimler and Volkswagen Group, the BASF chemical giant, ThyssenKrupp industrial group and Deutsche Bank. Next Tuesday will present "National Industrial Strategy 2030".

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