Deutsche Bank Reports Huge Loss for 2019.
The German lender said its bottom line suffered because it paid severance to fired workers and wrote down the value of troubled assets.
Deutsche Bank reported a whopping loss for the last three months of 2019 and for the full year as it cut staff and wrote down the value of assets, affirming its status as one of Europe’s most troubled big lenders.
The bank said it lost 1.5 billion euros, or $1.6 billion, in the last three months of 2019, bringing the total loss for the year to 5.3 billion euros. In 2018 the bank effectively broke even for the year and in the fourth quarter.
The Frankfurt-based bank, once Europe’s largest by assets, is in the midst of a desperate attempt to recover from years of scandal and mismanagement that has caused its share price to plummet more than 90 percent since 2007.
Among other things, the bank absorbed severance payments as it eliminated more than 4,000 jobs, bringing the total number of employees to 88,000. The bank also recorded losses as it acknowledged that some assets had lost value.
“Our new strategy is gaining traction,” Christian Sewing, the bank’s chief executive, said in a statement. “We’re very confident we can finance our transformation with our own resources and return to growth.”
Source : https://www.nytimes.com/