BERLIN/FRANKFURT (Reuters) - Deutsche Bank’s (DBKGn.DE) CEO on Thursday said an overhaul of the bank would take time but plans to turn around its performance were on the right track.
John Cryan, speaking at a reception in Berlin, also warned the political vacuum that had developed in Germany was one of several “major risks” that the economy is currently facing.
Germany’s largest bank recently said it would report its third annual loss in as many years, raising questions about the bank’s direction and Cryan’s leadership. [L8N1P31QP]
“Now we are again being asked whether our business model can actually work,” Cryan said. “I can assure you we’re convinced that we are on the right track. We shall remain resolute.”
Cryan said that the bank had always maintained that the reorganization, set out in 2015, would take several years, adding the bank was now embarking on a third phase of its restructuring - a focus on its clients.
That follows an effort last year to integrate its Postbank retail bank with its in-house consumer bank in an effort to cut costs. And in 2015, Cryan began working on internal controls and reduced legal risks.
Turning to politics, Cryan said that Germany was coping relatively well after its September election but said he hoped a stable government would be formed soon.
“Sooner or later, however, too many political question marks will prompt companies to postpone their long-term investments,” he said. “That’s why the success of the exploratory talks between the prospective coalition partners last week constitutes a good and important signal.”
Reporting by Klaus Lauer and Tom Sims; Editing by Christoph Steitz and Jane Merriman