Deutsche Bank is going to cut 9,000 jobs, including 4,000 in Germany, and close to 700 branches, as well as to cease its activities in Mexico.
According to Deutsche Welle, yesterday, CEO of Germany’s largest commercial bank, John Edge issued a letter to staff, which warned of the need for more austerity measures.
According to him, the bank “worsened external conditions.” Thus, Deutsche Bank has not yet completed the trial with the US authorities accuse him of irregularities in transactions with mortgage-backed securities in the period before the 2008 crisis. The authorities require a bank to pay $ 14 billion in penalties. It is expected that the final amount will be less. At the same time the bank has delayed the payment of the fine, according to the third quarter, EUR 5.9 billion.
In the third quarter the liquidity of Deutsche Bank fell by 23 billion euros – up to 200 billion euros. Cash outflow accelerated in late September, “but has since stabilized”, assured analysts CFO Marcus Schenck.
Anxiety heightened investors that the Bank of England, according to a recent report by the newspaper Financial Times, has demanded from the leading British banks to disclose information about how their business is related to Deutsche Bank.
At the same time Deutsche Bank showed a profit in July-September. Net income was 256 million euros compared to a loss of $ 6 billion in the third quarter of 2015. However, the beginning of the year Deutsche Bank shares fell in price by 41%, its market capitalization of 18.1 billion euros.