BERLIN: Deutsche Bank (DBKGn.DE) fell further behind its Wall Street rivals in 2016, lagging their strong rebound in bond trading in the last three months of the year and increasing pressure on CEO John Cryan ahead of an expected strategy update this spring.
Germany’s flagship lender posted on Thursday a net loss of 1.9 billion euros ($2.1 billion) in the final quarter of 2016 as legal costs for past misdeeds weighed heavily on results. Its shares fell more than 5 percent, the biggest losers among German blue-chip stocks. Analysts had expected the bank to post a loss of 1.16 billion euros.
“Our strategy will not fundamentally change,” Cryan told a news conference, adding the bank would continue to respond to changes in global markets and regulation. This could include withdrawing from more markets and client groups, but not another round of job cuts, he said.
“Our expectation is that we will be profitable this year,” Cryan said, adding it was too early to say when dividend payments would be resumed. The bank started the year well, with its cash cow debt trading unit seeing revenue rise 40 percent year-on-year in January, he said.
But some investors want more detail on the future course of the bank. “Investors want to know where the bank is heading. It is important that an adjustment of the strategy happens fast,” said fund manager Helmut Hipper from Union Investment.
