P&L Check

Now or Never for Deutsche Bank

  • Why it matters

    Why it matters

    Germany’s flagship bank has recovered from the crisis of confidence it suffered last fall. But investors are tired of the losses, share price slumps, negative headlines and strategic U-turns. They want results.

  • Facts


    • Investors have been reassured by Deutsche Bank’s settlement of two major legal cases and the successful completion of its €8 billion capital hike.
    • Qatar and Chinese conglomerate HNA, the two biggest shareholders, have made clear they want the management to implement restructuring plans and deliver results after U-turns and lengthy clean-up operations.
    • Despite recent cost cuts, Deutsche Bank’s cost income ratio, a key efficiency barometer, is 98, meaning it has to spend 98 cents for every euro it earns. Many of its rivals are far more efficient.
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Deutsche Bank AG’s Headquarters And Branches Ahead Of First Half Results
There's light at the end of the tunnel. Let's hope it's not the incoming train. Source: Bloomberg/Getty Images

In his two years at the helm of Deutsche Bank, John Cryan has pinpointed and analyzed its shortcomings with merciless precision. Even his critics aren’t denying that he has done a good job diagnosing the many ailments of the country’s chronically-troubled flagship bank.

But identifying the problems isn’t enough. They’ve got to be solved, and that hasn’t happened yet. Investors are tired of the lawsuits and losses, of the strategic U-turns and the endless stream of negative headlines. They’re putting the taciturn Brit under mounting pressure to show results in his bid to restore the bank’s health.

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