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Showing posts with label Germany Bank. Show all posts
Showing posts with label Germany Bank. Show all posts

Wednesday, 26 October 2016

16:30

What can Germany do to rescue Deutsche Bank

What can Germany do to rescue Deutsche Bank

Deutsche Bank WARNING: Fears dismal quarter results will trigger global crash' TOMORROW

Bad news could spark a sell-off contagion that could lead to another global financial meltdown and a bail out by Angela Merkel's government despite her opposition to German state intervention.

Analysts are warning that ultra high frequency trades triggered by machines could lead to a perfect storm and could have serious knock-on effects for other banks exposed to the firm's risky assets book.

Germany's largest lender has been hit by unprecedented sell-offs losing 52 per cent of its value in just a year and is struggling to ward off its crisis.

The bank has announced massive job cuts ahead of a £11.4billion fine from the US Justice Department.

And it has been muted that up to 5,000 jobs could go in America alone. 

Now investors, including their biggest stakeholder Qatar, are said to be on edge as they get set to reveal their latest financial data.

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Friday, 30 October 2015

07:18

Germany's biggest bank is taking the knife to costs after posting a massive 6 billion euro ($6.6 billion) loss in the third

Germany's biggest bank is taking the knife to costs after posting a massive 6 billion euro ($6.6 billion) loss in the third 

Deutsche Bank will cut 9,000 full time jobs and reduce the number of technology contractors it uses by 6,000. The bank said another 20,000 jobs will be shed over the next two years as it sells businesses and withdraws from certain markets.

Taken together, that represents a 27% fall in the number of people employed at the bank.

The sweeping overhaul is part of efforts by new CEO John Cryan to help Deutsche compete with its global peers by reducing the cost and complexity of operations.

The bank will close 200 branches in Germany -- with the loss of 4,000 jobs -- and pull out of 10 countries altogether, including Argentina, Chile, Mexico, Peru, Denmark, Finland and Norway.

Deutsche Bank (DB) is paying a heavy price for years of management, business and technology failings.

"We know exactly where we want to go, but for many years Deutsche Bank has had a serious problem with executing the strategy," Cryan told reporters.

Litigation costs alone have totaled 11 billion euros since 2012 -- including a hefty Libor-rigging fine earlier this year -- and tougher regulation has forced it to write down the value of investment and retail banking.

Deutsche will completely rethink the way it uses technology. It will work with startups, innovation labs and others to look at new technologies, and defend its business from potential disruptors.

"We have a traditional business in transaction banking... and we may have an 'Uber' moment and find that there's a new way of doing it. We need to protect that business," Cryan said.

In addition to slashing costs by 3.8 billion euros by 2018, the bank is also likely to scrap its dividend this year and next to preserve cash.

Shares in the bank fell more than 6% Thursday. They've gained just 3% this year compared to a jump of 10% on Germany's DAX index.

Cryan said settling outstanding legal and regulatory investigations will continue to weigh on the bank's performance through 2017.

Source :Money.cnn
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Tuesday, 25 August 2015

07:42

Deutsche Bank may exit retail operations in India

Deutsche Bank may exit retail operations in India

Germany's biggest lender Deutsche Bank is contemplating divesting its retail banking activities in India, according to a German newspaper report, even as the bank's retail operation in the country led to a 93% surge in net profit for the year ended March 2015 at Rs 1,406 crore.

The bank has not taken a final call as yet but if it does so, it will join RBS, which is exiting its private banking business in India along with departing from international banking to focus on the UK retail business.

Exiting Indian retail banking is part of Deutsche's larger plan to boost the European retail operation, the German daily said. The bank unveiled a massive restructuring plan at the end of April.

The newspaper reported Deutsche was also looking to sell its stake in China's Hua Xia Bank.

A Deutsche Bank spokesperson in India declined comment, terming the report "speculation".

The lender grew its advances in the country by 25% year-on-year on a low base and kept non-performing assets ratio at as low as 0.13%. Apart from retail operations, the bank has presence in equity broking, asset management and corporate finance, and has a non-banking finance company (NBFC) in the country.

The German lender was battling a troubled time globally with regulatory investigations relating to rigging of benchmark interest rates. Its global co-chief executive Anshu Jain resigned on June 7 after struggling to overcome regulatory woes and facing bitter investors and employees.

In India, the bank's advances as of March 31, 2015 were Rs 36,138 crore. Total deposits grew 48% to Rs 38,634 crore. Its cost-to-income ratio improved to 35% from 47% in the previous year. The results cover the performance of the 17 branches and do not include results of other group entities in India.

Deutsche Bank's capital base in India stood at Rs 9,453 crore as on March 31, 2015 with a capital adequacy ratio of 15.62%.
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