Business goes nicely at Deutsche Bank and earnings are higher than they’ve been for a very long time. If it weren’t for the present cash laundering investigations. The financial institution’s administration takes a stand.
There was no scarcity of excellent information at Deutsche Bank’s annual press convention in Frankfurt. After all, the financial institution achieved a backside line of round 6.1 billion euros final yr, whereas the earlier yr it was solely 2.7 billion euros. The monetary establishment was in a position to greater than double its revenue year-on-year. It is the perfect lead to nearly twenty years.
“We have therefore achieved or exceeded all of the milestones we were aiming for in 2025,” says financial institution boss Christian Sewing, wanting visibly proud: “We have laid a strong foundation for what lies ahead of us.” According to Sewing, the financial institution needs to develop into extra worthwhile and even develop into a European champion in the long run.
Shareholders will obtain a better dividend
The credit score establishment was in a position to improve its gross sales to 32 billion euros final yr. Investment banking remained a very powerful enterprise line. “There we underlined that we are absolutely world-class in the bonds and currencies business,” mentioned Sewing. On the opposite hand, the financial institution has made financial savings, for instance by chopping jobs and shutting branches.
The financial institution needs its shareholders to take part in its good outcomes. The financial institution boss is proposing a dividend of 1 euro per share for the previous yr. In distinction, final yr it was 68 cents. Basically the whole lot appears to be going in accordance with the CEO’s needs. Nevertheless, the press convention is clearly something however a routine occasion for him.
Have Bank worker perhaps dawdled?
Right at the start of his speech, Sewing deviates from his unique textual content and addresses the continuing cash laundering investigations. It’s about occasions from 2013 to 2018, says the financial institution boss. The start line is a suspected cash laundering report that was allegedly submitted too late. On this foundation, the general public prosecutor’s workplace is checking whether or not there’s proof of attainable cash laundering.
As is commonly the case with such investigations, this time the financial institution affected says it’s cooperating totally with the judicial authorities. Furthermore, Sewing doesn’t need to touch upon the subject and blocks the quite a few questions from journalists afterwards.
Money laundering investigations towards financial institution workers
Yesterday the Federal Criminal Police Office searched the financial institution, its headquarters in Frankfurt and one other financial institution constructing in Berlin. In the course of those searches, the press spokesman for the Frankfurt public prosecutor’s workplace, Dominik Mies, mentioned: “Deutsche Bank has had business relationships with foreign companies in the past, which in turn are suspected of having been used for the purpose of money laundering.” The financial institution is investigating these accountable and workers. It remained unclear whether or not they have been nonetheless employed there or not.
According to the general public prosecutor’s workplace, the formal searches proceed to at the present time. According to monetary circles, there’s mentioned to be a reference to a Russian oligarch who’s now on the European Union’s sanctions listing. Bank boss Sewing additionally made no touch upon this.
Not the primary raid on Deutsche Bank
Management seems relaxed. The financial institution has had issues associated to cash laundering up to now. Because the monetary regulator BaFin was dissatisfied with the financial institution’s inner controls, it despatched a particular consultant. There have already been a number of raids on the financial institution, round 2018. Back then, too, there have been suspicions of cash laundering.
When requested about attainable upcoming authorized disputes and prices, the financial institution’s outgoing CFO, James von Moltke, was assured. It’s tough to foretell one thing like this, however it actually will not be as dramatic as in earlier years. CEO Sewing expressed related optimism. The financial institution is engaged on the previous and constantly wanting ahead.
Branch closures annoy financial institution clients
The monetary establishment needs to proceed its present austerity measures. For instance, of the 750 places that Deutsche Bank operates along with its subsidiary Postbank, one other 100 are anticipated to be eradicated by the top of this yr. A financial institution department in Oberursel was closed this month; in accordance with the financial institution, the purchasers affected ought to come to the closest department in Bad Homburg just a few kilometers away. This makes a lot of them upset. Martina Ahrendt is considered one of them: In order to get recommendation from the financial institution, she must take a protracted bus journey sooner or later, which will probably be tough for her.
Like right here, many banks have been closing branches for years, says Florian Heider, scientific director on the Leibniz Institute for Financial Market Research Safe in Frankfurt: “The trend towards fewer branches will continue.” Digitalization permits buyer contact with out conventional recommendation, which is commonly extra worthwhile for banks. But private contact is essential, particularly when making complicated choices.
Instead, Deutsche Bank is relying extra closely on synthetic intelligence and a brand new digital banking assistant. It ought to reply clients’ easy questions and help them of their long-term banking transactions. However, in view of the quite a few IT issues within the group in recent times, particularly on the Postbank subsidiary, many financial institution clients are skeptical.
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