Deutsche bank faces another year of losses

Deutsche Bank faces another year of losses

A radical restructuring of the group is to end the german bank’s drought. But it will be a long time before group CEO christian sewing can reap the rewards.

Because of the billions in costs for the conversion, the full year 2019 was also allowed to end in the red – according to the bank’s latest figures, it would be the fifth consecutive year of losses for germany’s largest financial institution. The dax group will publish figures for the third quarter of the current year on wednesday (30 june). October).

For the full year 2019, analysts expect a loss of around 4.3 billion euros, according to a bloomberg forecast. The market is obviously having a hard time assessing the third quarter. Unlike usual, there is currently no overview of current estimates on the bank’s website. The number of available estimates is too low, it is said in explanation.

The 2018 financial year – originally the first with a surplus since 2014 – had been recalculated by the bank and subsequently declared to be another year of losses. As the previous figures were no longer comparable with future results due to the reorganization of the business units, deutsche bank has adjusted them retroactively.

On the basis of these pro forma results, including interest payments for subordinated bonds, the bank posted a loss of 52 million euros for 2018, compared with an original profit of 267 million euros.

Sewing wants to end the institute’s permanent crisis with a fundamental realignment. The number of full-time positions is to be reduced by around 18,000 to 74 worldwide by the end of 2022.000 decline. At the end of june, deutsche bank still employed almost 90 people worldwide.900 employees. Investment banking, which had caused the bank billions in penalties, is to be severely cut back. The core of the new deutsche bank is to be the new unternehmensbank division, which will take care of medium-sized companies, family businesses and multinationals.

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