Deutsche Bank gambles German goodwill with bonus bonanza

Deutsche Bank gambles German goodwill with bonus bonanza

Deutsche Bank on Friday posted its third consecutive annual loss in 2017, taking a hit from challenging markets, a drop in investment bank revenue and a United States tax reform.

And the impact of Brexit would likely stretch to European Union banks, causing Deutsche Bank's profit margins to take yet another hit.

Deutsche Bank's British chief executive may have done much to rebuild bridges between Germany's biggest bank and its politicians, business leaders and general public, but John Cryan has gambled this goodwill in an effort to keep top bankers.

For now, the German lender, whose share price has lagged just about every other big bank, doesn't look like the hero the continent might wish for.

Other banks also have taken big charges stemming from the US tax overhaul adopted in December, though lenders expect the changes to boost profits in the long run.

Deutsche Bank has reported its latest Q4 financials, which saw the bank incur its third consecutive loss in 2017.

"Those businesses are not core to us and remain not core".

The bank cited low volatility and reduced client activity in the markets as factors in the revenue slide.

Deutsche Bank gambles German goodwill with bonus bonanza

Deutsche Bank's management board hasn't made a dividend decision for 2017, the finance chief, James von Moltke, told analysts.

And Marcus Schenck, co-deputy CEO who oversees Deutsche Bank's investment bank, pointed out that many USA banks fled Germany as the financial crisis hit in 2007, leaving companies there in the lurch. Disappointing earnings from Deutsche Bank are weighing on the indices, while other banks are also in the red.

Elsewhere Friday, Danske Bank shares rose 1.99% to DKK246.00 after reporting better-than-expected fourth quarter earnings results.

Trading hasn't been kind to most any of the big banks.

Even so, the results sent the bank's shares sharply lower.

"I think we've actually been erring slightly on the generous side" when awarding bonuses for 2017, Cryan said in an interview with Bloomberg TV Friday.

Investors are frustrated with profit weakness but give Mr. Cryan credit for progress settling litigation headaches and making tough decisions to exit risky businesses and cut staff.

In investment banking, where Deutsche Bank posted a loss of more than 700 million euros during the final three months of the year, pay and bonuses in the same period jumped 45 percent year on year to more than 1.2 billion euros. Banks in general are grappling with smaller overall fee piles clients are paying for trading and investment banking.

Trump grants 6900 Syrians temporary permission to stay
Still, Neilsen said those who came to the USA more recently "may be eligible to seek other forms of immigration relief". It is also unclear whether the Trump Administration will deport Some Syrians once their Temporary status expires.

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