Deutsche Bank shares fall after reporting third quarter earnings
Deutsche Bank CEO Sewing to receive 15 pct of remuneration in shares
BERLIN, Sept. 2 (Xinhua) — Christian Sewing, head of Deutsche Bank, has stood by his word and is to receive part of his monthly income in shares of the German banking group over the next few years, the company announced on Monday. The costs of that overhaul — €315 million in spending on “severance and transformation-related charges” — dragged on the bank’s third-quarter earnings. The shares tumbled 4.8%. Deutsche Bank has now priced 21 ECM transactions since repositioning its equities business. Deutsche Bank was joint bookrunner on the 5.75 billion US dollar Hong Kong IPO (including greenshoe) of AB Inbev’s Budweiser Brewing Co and financial advisor to Naspers on its 120 billion euro listing of Prosus.
The embattled German lender has struggled since the global financial crisis of 2008 and the subsequent debt crisis in the euro area. The bank has faced billion-dollar fines, increased market competition, a lower market share in both commercial and investment banking, as well as a series of management changes. FRANKFURT (Reuters) – Deutsche Bank Chairman Paul Achleitner on Friday bought nearly 1 million euros (915,717.35 pounds) in the bank’s shares, according to a regulatory filing. “One has to look very hard to find anything positive in Deutsche Bank’s results this quarter,” said Octavio Marenzi, CEO of capital markets management consultancy Opimas. Net revenues in investment banking fell 5% from a year ago.
Deutsche said at the time it would be cutting its stock sales and trading unit as part of its plan to rid itself of the more volatile divisions. “Bond trading is about all it has left in investment banking,” Wilson said. Sales in that unit plunged 13%.
Out of a planned 18,000 job cuts, Deutsche eliminated 1,500 in the third quarter, though the number of employees in its investment bank rose as an intake of new graduates offset staff cuts in equity trading. Credit Suisse on Wednesday reported a rise in third-quarter earnings buoyed by higher revenue in markets and international wealth management. Standard Chartered’s profits rose 16% helped by rising income from corporate and private banking clients. The bank’s shares fell nearly 9% late afternoon in Frankfurt and were heading for their biggest daily loss in almost three and a half years. The bank had flagged in July it would make a loss this year and announced restructuring plans worth $7.4 billion including the elimination of 18,000 jobs.
Shares of Deutsche Bank are down by about 16% from a year ago. said on Friday it had promoted Fabrizio Campelli to chief transformation officer with a mandate to oversee the biggest reorganization in the bank’s history, including its plans to cut 18,000 jobs worldwide.
It had reported a net profit of 229 million euros in the third quarter of 2018, but a loss of 3.15 billion euros in the second quarter of this year. Deutsche Bank reported a net loss that missed market expectations on Wednesday as a major restructuring plan continues to weigh on the German lender. Deutsche Bank on Wednesday posted an https://finprotect.info/referendum-o-vyxode-britanii-iz-es/ 832 million euro ($924.35 million) loss in the third quarter due to costs for a major restructuring. Deutsche Bank on Friday appointed Claudio de Sanctis as global head of its wealth management business. The 992,380 euros in shares that Achleitner bought on Friday exceed his 2018 fixed salary from Deutsche Bank of 858,333 euros.
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Deutsche Bank AG shares are currently trading up about 1.8% on the day. As part of the restructuring plans, the number of full-time employees at Deutsche Bank is to be reduced by around 18,000 to 74,000 worldwide by the end of 2022.
- Deutsche Bank’s investment business in London and New York were already hit by heavy staff cuts and German media reported that Deutsche Bank’s austerity measures could also lead to a reduction of the bank’s branch network in Germany.
- Deutsche Bank AG shares are currently trading up about 1.8% on the day.
- Also in the past week, Deutsche Bank was joint Glo-Co on the 385 million euro offering of D shares for Akelius Residential Property AB, the first ever issuance of euro denominated D shares, a format combining the benefits of hybrid and common stock.
- The bank had flagged in July it would make a loss this year and announced restructuring plans worth $7.4 billion including the elimination of 18,000 jobs.
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Deutsche Bank’s investment business in London and New York were already hit by heavy staff cuts and German media reported that Deutsche Bank’s austerity measures could also lead to a reduction of the bank’s branch network in Germany. Deutsche is closing its global share-trading business and significantly cutting back investment banking operations, saying that the restructuring will cost €7.4bn.
The German bank plans to cut 18,000 jobs worldwide by 2022. shares fell more than 8% on Wednesday after the bank reported an 832 million euro ($924 million) third-quarter loss hurt by restructuring costs and weakness in fixed-income trading.
ended 1.9% lower. Deutsche Bank reported a €3.15 billion loss in the second quarter, after taking a €3.4 billion restructuring charge, brexit история which was larger than it previously flagged. Excluding the charge, it would’ve reported a lower-than-expected €231 million loss.
FIXED INCOME FALLRevenue at Deutsche’s cash-cow bond-trading division fell 13%, highlighting continued weakness at its investment bank. The third-quarter loss compares with a 3.15 billion euro loss in the second quarter brexit news and a 229 million euro net profit a year earlier. The bank is aiming to break even in 2020, but analysts are concerned about its ability to generate revenue. Deutsche Bank shares have lost 33% over the last 12 months.
Earlier this year, Deutsche Bank announced a wide restructuring plan in an attempt to revive its business. At the time, Christian Sewing, CEO of Deutsche Bank, said the lender would be exiting its global equities business, scale back investment banking and slash thousands of jobs.
Shares of Deutsche Bank fell by 2% in early European trading hours. Its stock price is down by about 16% from a year ago. At the end of the third quarter of 2019, Deutsche Bank reported that it had 89,958 employees — a 5% drop from a year ago.
Your organisation’s administrator(s) may view basic usage and profile data about your account and have the ability to set up myFT topic follows on your behalf. You already have an account on ft.com using this email address. Please login to your account. In July, the bank said it will axe 18,000 jobs as part of a major restructuring.
“Bond trading is about all it has left in investment banking,” said one analyst. Sales in that unit plunged 13%. The bank posted €315 million in costs on “severance and transformation-related charges,” which dragged on the bank’s third-quarter earnings. In the US, last week Deutsche Bank acted as an Active брексит новости Bookrunner on Grocery Outlet’s 440 million dollar first time follow on after the June IPO. The bank has also maintained its leading SPAC franchise, pricing IPOs for Oaktree (200 million dollars), Conyers (450 million dollars) and KSL (275 million dollars) since the repositioning of its equities business.