Deutsche
Bank Current Status
Over the past 3 years First Edge has been monitoring all the facts and
speculations surrounding Deutsche Bank.
(The research information presented below has been compiled by
First Edge and FEM along with other financial institutions and independents
companied were connected to).
Deutsche Bank posts worst quarterly loss in four years
German lender counts cost of plan to cut 18,000 jobs as it records £3.1
billion shortfall
Deutsche Bank
has made its biggest quarterly loss in four years as it counts the costs of
plans to reduce its global workforce by 18,000.
The German lender
made a €3.1bn (£2.8bn) net loss in the second quarter, driven by €3.4bn in
costs related to job cuts and reorganisation at the bank.
Deutsche Bank
expects the turnaround strategy to cost a total of €7.4bn and is aiming to
return to profit next year.
It is the bank’s
biggest quarterly net loss since the third quarter of 2015, when that figure
reached €6bn, and is the second largest since the final months of 2008, when
the financial crisis took hold. It also follows a €201m profit in the first
quarter of 2019
The Deutsche Bank CEO, Christian Sewing,
Here’s went
wrong at Deutsche Bank?
1989-1999
Deutsche Bank embarks on a period of global expansion, beginning with the
acquisition of merchant bank Morgan Grenfell in the UK and other European
markets such as Spain, where it buys Banco de Madrid. It consolidates its US
operations into one, in an effort to take on the big beasts of Wall Street
such as Goldman Sachs, and in 1999 it builds on its US foothold by snapping
up New York-based Bankers Trust for $10bn.
2001
Deutsche Bank floats
on the New York Stock Exchange, cementing its position as one of the major
players, not just on Wall Street but in global banking.
2004-2008
Deutsche Bank becomes a leader in mortgage-backed securities, bundling up
homeowners’ debt into huge packages and selling them on to investors. The
bank continues to sell toxic mortgage-based investments even as the market
turns south and it begins betting against such products itself. The bank
reports its first annual loss for five decades for the 2008 financial year,
losing €3.9bn.
2009
An internal investigation finds that the bank hired private detectives to
spy on people it considered a threat – including a shareholder, a journalist
and a member of the public. German prosecutors find no evidence of criminal
wrongdoing or that senior executives were
2015
It is fined $2.5bn (£1.7bn) by US and UK regulators for rigging the Libor
interest rate, ordered to fire seven employees and accused of being
obstructive towards regulators. Joint chief executives Anshu Jain and Jürgen
Fitschen resign
in the wake of the Libor scandal.
The bank is fined
a further $258m in
the US for doing business with US-sanctioned countries like Iran and Syria.
2016
As regulators continue to sift through the wreckage of the banking crash,
Deutsche takes a large slice of the blame. In September 2016, its shares
slump on news that the institution faces
a $14bn (£10.5bn) charge over
mis-selling mortgage securities in the US. It eventually reaches a $7.2bn
settlement with the US Department of Justice.
2017
UK and US regulators fine
Deutsche more than $630m (£506m) after
finding that the lender failed to prevent $10bn of Russian money laundering
via 'mirror trades', which had no economic purpose and served only to
transfer money covertly.
2018
New York financial regulators hand down a fresh fine, just $205m this time,
for 'lax oversight' in the bank’s foreign exchange business when it was the
world’s largest dealer in foreign currency.
Christian Sewing takes over as chief executive and after three consecutive
years of heavy losses, he slashes
7,000 jobs from
Deutsche’s bloated investment banking arm.
2019
Deutsche enters merger talks with another troubled German lender,
Commerzbank. The talks
fall apart in April 2019,
scuppering plans for a bank that would have been the eurozone’s second
largest. Sewing announces
18,000 jobs cuts,
20% of its workforce, with the axe falling worldwide.
Even without the
extra charges, Deutsche’s net income would have dropped by more than 40% to
€231m in the second quarter, compared with the same period a year earlier.
Further restructuring charges are expected to dent the bank’s earnings in
the second half of the year and the lender is expected to report a full-year
loss for 2019.
This month,
Deutsche Bank announced the plans to cut about a fifth of its 91,500-member
global workforce by 2022. Over the past two and a half weeks, more than 900
employees have either been handed their notice or told their role will be
eliminated. Most were employed in the equity trading division, and the
Guardian understands that hundreds have been lost from Deutsche’s City of
London office.
It is unclear how
many jobs will go in London, where Deutsche Bank is one of the Square Mile’s
largest employers with about 7,000 staff.
The company’s
shares were down 2.3% at €6.97 in afternoon trading on Wednesday.
In a message to
staff, the chief executive, Christian Sewing, said: “The past few weeks have
been extremely challenging for all of us … but we can say with confidence
that we have passed the first hurdle
“By and large our
strategy is no longer being called into question, either by our investors or
by the media or – most importantly – by our clients. And I have the
impression that you too believe we are on the right track.”
Sewing said the
job cull had been “painful” but that it was important not to leave staff “in
limbo”. “Where our restructuring creates the need for further reductions, we
will do everything we can to be able to communicate our decisions as soon as
possible.”
Top 10 Owners of Deutsche Bank AG
Stockholder |
Stake |
Shares
owned |
Total value ($) |
Shares
bought / sold |
Total
change |
Hudson Executive Capital LP |
3.14% |
64,861,476 |
470,245,701 |
0 |
0.00% |
The Vanguard Group, Inc. |
2.91% |
60,137,652 |
435,997,977 |
+917,133 |
+1.55% |
Goldman Sachs International |
1.62% |
33,458,750 |
242,575,938 |
-5,076,930 |
-13.17% |
Amundi Pioneer Asset Management, ... |
1.16% |
24,009,300 |
174,067,425 |
+11,449,751 |
+91.16% |
Norges Bank Investment Management |
0.96% |
19,849,531 |
143,909,100 |
-5,687,497 |
-22.27% |
COMMERZBANK AG (Investment Manage... |
0.78% |
16,156,222 |
117,132,610 |
-323,952 |
-1.97% |
Deka Investment GmbH |
0.78% |
16,137,808 |
116,999,108 |
+89,366 |
+0.56% |
Credit Suisse Securities (USA) LL... |
0.75% |
15,546,559 |
112,712,553 |
-2,023,149 |
-11.51% |
Merrill Lynch International (Inve... |
0.73% |
15,061,687 |
109,197,231 |
-4,036,273 |
-21.13% |
Franklin Mutual Advisers LLC |
0.59% |
12,276,874 |
89,007,337 |
-63,549 |
-0.51% |
|