Deutsche Bank lost €6.8 billion in 2015 - now management's bonuses are cancelled

29 Ιαν 2016

Deutsche Bank posted a huge €6.8 billion (£5.1 billion, $7.4 billion) loss for 2015 - its first annual loss since 2008. After the news, Deutsche Bank's supervisory board confirmed that the German lender's management board would not get bonuses for 2015.


   Deutsche Bank confirmed on Thursday morning in its 2015 results statement that in the fourth quarter of last year it made a €1.15 billion pretax loss, compared with a net profit of €323 million a year earlier.
   This was mainly due to €1.2 billion worth of litigation charges for the period. This brought total litigation charges to €5.2 billion for 2015, up from €2 billion booked in 2014. But investors expected this huge loss. Last week, Deutsche Bank warned markets that it was facing a net loss of about €6.7 billion for last year.
   But restructuring charges tipped the bank's net loss over this forecast, as it cost €800 million in the fourth quarter of last year to pay for severance packages after the group decided to close numerous retail banking branches. Another €100 million was lost because of Deutsche Bank's hiving off Postbank.
   "In 2015 we made considerable progress on the implementation of our strategy. The much needed decisions we took in the second half of the year contributed to a net loss for the fourth quarter and full year," said John Cryan, Deutsche Bank's co-CEO.
   "We are focused on 2016 and continue to work hard to clear up our legacy issues. Restructuring work and investment in our platform will continue throughout the year. "We know that periods of restructuring can be challenging. However, I’m confident that by continuing to implement our strategy in a disciplined manner, we can and will transform Deutsche Bank into a stronger, more efficient, and better run institution."
   Full-year revenue rose by 5% to €33.5 billion, though revenue in the fourth quarter cratered by 15% year-on-year to €6.6 billion. Deutsche Bank will release its final financial statements on March 11. Later Thursday, Cryan confirmed to reporters in a news conference that Deutsche Bank's supervisory board took the decision not to award bonuses to management.
   "In the context of the overall performance of the bank last year, which the board has to own ... that is a decision which I respect," Cryan said, according to Reuters and the Financial Times, which were at the conference.
Πηγή: Business Insider
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