The bank of Deutsche is not in a good shape and the bank’s leadership is not revealing its plan for future. The results of the first quarter of the bank on Friday revealed that the revenue of the bank has been falling at a quicker rate than its costs, a day post its talks of merger with CRZBF was called off. Still the CEO of the bank Christian Sewing has not said anything about its future steps.
Sewing said that they would not be drawing any speculation about the other options that they have considered or what other options they have or are under consideration. He added that people also should not draw conclusions from his not commenting on it. The shares of Deutsche Bank dropped 3% pushing the losses over previous year to almost 40%.
The investors have clearly wanted the CEO to be forthcoming about their future plans, but he was mum on it. He said that it was too early for sharing detailed update on the bank’s thinking. Following the global crisis, the bank has been struggling regarding its future in these years. It has get on with a number of overhauls which have failed to get any profits. The bank’s quarterly earnings have showed that there were major problems with the bank.
Its profit rose to 67% in first three months of 2019. Its revenue fell 9%, and they announced that they would be flat for the current year.
The bank has refrained from activities of investment banking. But investment banking still accounts for half of the revenue of the bank which is under strain and is consuming huge capital even the bank is falling behind its rivals. The revenue of investment banking fell 13% to $3.7 billion while the costs of the unit totaled $3.8 billion.