Deutsche Bank’s multi-year overhaul is ahead of plan and remains its primary focus said Chief Executive Christian Sewing to the shareholders, promising an era of more sustainable profit. Due to the pandemic situation, the bank’s annual shareholder meeting was held online.
This meeting took place in a more relaxed atmosphere than in recent years. Which is a reflection of the lender’s return to profit and rising share price. Three years into its restructuring, Sewing said Germany’s largest bank wasn’t over the finish line. He said that they have come a long way but still they have work to do, even though they have already achieved so much.
Sewing said that their main focus is the successful execution of their transformation by 2022, when asked about possible mergers and acquisitions. For the first quarter, Deutsche posted a net profit. This is the strongest result in over seven years. This is driven by its investment bank which outperformed major U.S. rivals. Its shares are up more than 130% from last year’s record lows.
Chairman Paul Achleitner said that there are no more question marks hanging over the stability of their bank. And many of the problems of recent years have been remedied. Alexandra Annecke, a fund manager with Union Investment, said that the Deutsche had become an exciting turnaround story. She said that the shareholders have the worse behind them. And they finally see light at the end of the tunnel.
Deutsche’s restructuring is done by exiting business lines such as equities trading and shedding 18,000 staff. The bank is optimistic among the rating agencies. Recently Deutsche had been put under review for a possible upgrade by the Moody. But still the bank has problems in money laundering controls. Deutsche has been ordered to enact further safeguards to prevent money laundering, by the Germany’s financial regulator. Achleitner said that they must improve their transaction monitoring.