Date: 23rd May 2019
Amidst concerns over the performance of the investment bank of Deutsche Bank, its CEO on Thursday said he plans to decrease the spending on the bank. The investment bank of the company has shown negligible signs of improvement after numerous attempts of restructuring.
The company’s shares have dropped sharply in recent times. CEO Christian Sewing is therefore expected to face a plethora of questions over the past performance, future prospects and the current strategies of the company.
After observing the performance of the investment bank, many investors have urged the company to reduce the scale of operations of the division. The CEO said in a statement that the management plans rationalize on businesses that are able to turn profits for the company.
While Sewing said that he plans to make significant “cutbacks”, he did not explain where and how much the cutbacks would be.
The bank seems to be great trouble not only because it posted a profit in 2018 after four years in losses, but also because shareholders are being persuaded to vote for a motion of no confidence in management. The advisory groups of the shareholders, Glass Lewis and Institutional Shareholder Services (ISS), have urged the shareholders to issue the vote.
In addition to the unimpressive performance of the bank over the past several years, the company is also being confronted for the failure to move talks forward with Commerzbank last month regarding their merger.
The shares of the company were traded at 6.42 euros on Thursday. Shareholders are concerned since the shares have dropped by 38 percent compared to the price during the last shareholders’ meeting.
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