[ad_1]
The new CEO of Deutsche Bank, Christian Sewing, has not yet succeeded in transforming the large German bank.
Wednesday morning, the stock price fell 4% as a result of a report showing a high profit in the third quarter.
Net profit fell to 211 million euros, or nearly 2.2 billion Swedish crowns, according to the third quarter report presented by the largest German bank Wednesday morning before the opening of the stock exchange. Frankfurt. It was less than a third compared to the previous year.
The result was better analysts' forecasts of nearly 1.6 billion SEK. The stock price rose on the exchange rate but fell sharply and became the loser of tomorrow at the Frankfurt Stock Exchange. The course is now close to the lowest level in more than 20 years.
Lower costs will help improve profits, while revenues are slower than expected. These decreased by 9% to just under 6.2 billion euros, which corresponds to 64.2 billion SEK. It was also the lowest level recorded for the third quarter since 2010. This decline is mainly due to the contraction of the investment bank.
At the same time, revenue forecasts for 2018 are reduced to a certain decrease compared to the previous estimate of unchanged sales.
However, President and CEO Christian Sewing sees the result as a "milestone".
"We are on our way achieve our first gains since 2014. We have made particular progress in reducing costs. We are very confident to reach our targets for 2018. Moreover, we have not yet reversed the turnover, "he wrote in a letter to employees Thursday.
He succeeded in April the British John Cryan, who had lost his job after only three years because he was not controlling costs.
Christian Sewing wants Continue to reduce staff, resulting in short-term costs, but at a lower cost.
Deutsche Bank reduce the number of employees from 1,700 to 93,000 in the fourth quarter, to 90,000 by the end of 2019.
On Wednesday, the report of wealth manager DWS, still counted as a subsidiary, was released despite the launch of March. Net profit increased by one-third in the third quarter to 121 million euros, or 1,250 million euros.
However, outflows from DWS amounted to 2.7 billion euros, or 28 billion, which is attributed to the tax reform of President Donald Trump.
Analysts are strongly negative for Deutsche Bank. Only one of the 41 analysts in the summary of the economic magazine Handelsblatt issues a recommendation to buy on the action, while 24 have a neutral opinion and 17 say "sell".
Source link
