Deutsche Bank scraps board bonuses after record loss
By Arno Schuetze and Jonathan Gould
FRANKFURT (Reuters) - Deutsche Bank (DBKGn.DE: Quote) scrapped board bonuses this year after posting a record loss for 2015 on Thursday, with Chief Executive John Cryan urging investors to be patient with his revamp of Germany's largest lender.
"We all know that restructuring can be very challenging. It takes time, resolve and patience," Cryan said, as Deutsche reported fourth-quarter earnings. They included a 1.2 billion euro ($1.30 bln) loss in its investment bank, hit by legal costs and weak bond trading.
Cryan acknowledged that the bank had lost ground in equities and pledged to invest in its research and sales units to recover market share.
The bank's supervisory board had decided Wednesday that the executive board will not receive any bonus for 2015, he said.
Deutsche Bank shares hit a seven-year low after the lender flagged the loss last week, adding to a near 40 percent drop in the share price since Cryan took the helm in July.
"The further writeoffs announced raise the issue of capital again," the head of European equities at a fund firm which sold out of Deutsche Bank shares in late 2015 said, without wishing to be identified.
Cryan stressed that at this stage, Deutsche Bank is not planning to increase its capital.
Restructuring was hurting employee morale, he said, but he was confident that sticking to the bank's strategy would deliver results. Continued...