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Sunday, 17 January 2021

Deutsche paints gloomy picture

Duration: 01:23s 0 shares 1 views
Deutsche paints gloomy picture
Deutsche paints gloomy picture

Deutsche Bank has halved its revenue growth target amid steep challenges to its restructuring effort.

David Pollard reports.

Deutsche Bank has been trying to revive its fortunes - it's been tough going.

And now Germany's biggest lender is paring back its growth target.

Core banking revenue, it said on Tuesday (December 10), will grow by just one per cent in the run up to 2022.

That's half the level estimated only months ago.

To blame, say analysts: a gloomy economic backdrop - and the ECB.

Its ultra-loose monetary policy has battered savings and bank profits ... And got a major thumbs down from Deutsche boss Christian Sewing ... When the central bank cut rates in September.

SOUNDBITE) (German) DEUTSCHE BANK CEO, CHRISTIAN SEWING, SAYING: "Macroeconomically, a further rate cut at the current level will fizzle out.

It will only push asset prices further up and burden savers." Tuesday also saw a return to favour for its investment banking unit.

In July, Deutsche began cutting 18,000 jobs as it beat a retreat from equities trading.

But the remainder of the division is now seen as a growth driver - with a 2 per cent revenue increase pencilled by 2022.

With a recent past marred by heavy losses, regulatory fines and litigation.

Deutsche is currently under investigation over links to Danske Bank's 200 billion euros money laundering scandal.

Its overall progress in restructuring, though, had, said Sewing, made "significant progress".


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