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 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 https://g-forex.net/chto-takoe-breksit-obzor-novostej/ 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.
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%.
Deutsche Bank shares sink 8% after third-quarter loss
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.
The German bank plans to cut 18,000 jobs worldwide by 2022. shares fell more than 8% on Wednesday after the bank reported brexit an 832 million euro ($924 million) third-quarter loss hurt by restructuring costs and weakness in fixed-income trading.
- 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’s DWS asset management subsidiary is doing away with most titles as of next year, according to an internal memo on Tuesday.
- “Bond trading is about all it has left in investment banking,” said one analyst.
- The Financial Times and its journalism are subject to a self-regulation regime under the FT Editorial Code of Practice.
- Deutsche Bank shares have lost 33% over the last 12 months.
- 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.
Deutsche Bank posts 832 million euro loss amid major restructuring plan
Shares of Deutsche Bank are down by about 16% from a year ago. said on Friday it had promoted Fabrizio Campelli to chief transformation brexit officer with a mandate to oversee the biggest reorganization in the bank’s history, including its plans to cut 18,000 jobs worldwide.
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.
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 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.
“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 brexit 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.
Achleitner bought the shares at 6.844 euros per share, according to the filing. Deutsche Bank supervisory board members receive part of their annual compensation in shares, but Friday’s purchase brexit news is not part of that. But after a string losses and scandals, Deutsche is going through one of the biggest overhauls to an investment bank since the aftermath of the financial crisis.
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. In addition Deutsche Bank was joint Glo-Co on the 345 million US dollar re-IPO for JSE Halyk Bank of Kazakhstan, the largest re-IPO in the CIS region this year. Deutsche Bank has been mandated on 26 new ECM transactions since July, contributing to a solid pipeline of business for the rest of the year.