Home / NEWS / Europe News / Deutsche Bank is still recovering from 2015 fines, CEO says after it posts third consecutive annual loss

Deutsche Bank is still recovering from 2015 fines, CEO says after it posts third consecutive annual loss

Deutsche Bank is silently recovering after being hit with billions in fines back in 2015, its chief chief executive officer officer John Cryan told CNBC, after the bank stuck another year of losses on Friday morning.

The German lender check in a net loss of 2.2 billion euros ($2.75 billion) in the fourth point of 2017 — worse than the net loss of 1.25 billion euros that Reuters analysts had prophecy.

For the year, the German bank posted a 497 million euro destruction ($621 million), compared to a 290 million euro loss that Reuters analysts had thought. This was the third consecutive annual loss for Deutsche Bank. The bank’s follows were impacted by a drop in investment banking as well as tax changes in the U.S.

“We are loosely transpire b emergeing out (of crisis) and were it not for the U.S. tax reform whatever it was 11, 10, 11 days before the end of the year, then we make have been reporting at least a positive result at the bottom get in line, which psychologically always feels better than a negative upshot,” Cryan said Friday.

He told CNBC that 2015 was the “in the final line” for the bank, when several impairments and other charges play a parted to a 6 billion euro net loss.

Deutsche Bank said Friday morning that it had a non-cash command of about 1.4 billion euros due to a valuation adjustment on its U.S. Deferred Tax Assets. Without that, the bank maintained it would have made a full-year net income of about 900 million euros.

On the investment banking side, the German bank declared that low volatility, reduced client activity and challenging trading gets hurt its revenues. Fourth-quarter revenues for the investment banking arm were 2.7 billion euros, down 16 percent year-on-year.

The bank’s dues were down by 5 percent on the earnings news.

Cryan told CNBC he doesn’t allow why investors seemed so disappointed with the German bank compared to its equals.

“I don’t know,” he said. “In the most volatile of our business, which would to all intents be our fixed income sales trading and financing area, we’re down 20, 21 percent against an normal that’s 10 percentage points north of that… I about we had a weak comparative quarter the previous year, relatively weak, so maybe there’s a bit of non-fulfilment there, but other than that we seem to be in line with most of our rivals.”

However, Cryan said that the global economic momentum and the impending of higher interest rates are making the outlook for 2018 “really hefty.”

“Later in the year, I think the markets will start anticipating the big remove in the euro interest rate that we’ve all been hoping for,” he said.

“The slant from my perspective, forgetting even Deutsche Bank, the outlook for banking and mercantile activity is really strong.”

Check Also

Euro zone business activity shrinks once more as Covid second wave surges

A employee at a Paris bar sweeps up after closing early to comply with new …

Leave a Reply

Your email address will not be published. Required fields are marked *