Deutsche Bank Tumbles After CEO Says Bank Won't Be Profitable This Year

Tyler Durden's picture

Back in January, Deutsche Bank reported what were variously described as “horrible,” “grim” results.

The net loss for 2015 came in at roughly $7 billion, the first annual loss since the crisis. The abysmal year was capped off by €2.1 billion of red ink in Q4 of which some €1.2 billion was attributable to litigation.

The Q4 breakdown - which came a few days after CEO John Cryan initially reported how bad 2015 truly was - was a nightmare. Revenues plunged 30% in corporate banking and securities where provisions for credit losses jumped from just $9 million in Q4 2014 to $115 million. Citi questioned whether the bank’s investment bank model is in “structural decline.”

“We think that the bank is in for another difficult year in that guidance is that ‘2016 peak restructuring year’," BofA said, adding that "it looks like revenues are under a lot of pressure, yet adjusted costs are guided to be flat with another €1bn of restructuring costs."

Citi sees an additional €3.6 billion in litigation for 2016.

Cryan - who took the reins from Anshu Jain and Jürgen Fitschen (who is still hanging around) last summer - has cut thousands upon thousands of jobs as part of a desperate attempt to restructure the German behemoth which some say is in very real trouble.

Underscoring that assessment are comments out today from Cryan who spoke at a conference in London.

We’ve said this year is not going to be a profitable year, we may make a small profit, we may make a small loss, we don’t know,” he stammered.

But then again, maybe he does know, because moments later he said this: “There’s a lot of stuff we have to get done this year, so this year we’re not going to be profitable.”

Right. There’s “a lot of stuff to get done this year,” but making a profit isn’t one of them.

Meanwhile, according to Zeit, the bank is cutting its German branches to about 500.

As for the stock... well, it's getting crushed:


Which reminds us of what we said in January: "don't be surprised to see the equity trading in the single digits by year end." 

Still liking the job John? 

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Cognitive Dissonance's picture

"The abysmal year was capped off by €2.1 billion of red ink in Q4 of which some €1.2 billion was attributable to litigation."

Well...at least the lawyers are making a living.

/sarc

JamesBond's picture

... and surely they aren't leveraged at all.

 

cause then they would be totally fucked, right?

 

jb

Arnold's picture

My  DB Derivative broker just called to let me know that he is going on vacation.

Nice guy.

RaceToTheBottom's picture

DB Derivatives?  They ever deal with that wall of debt or is that still out there, doing what Innovative Financial Products do?

eforce's picture

Deal with a $30tn debt wall? lol

waterwitch's picture

Deutsche berg dead ahead, cap'n!

VinceFostersGhost's picture

 

 

Deutsche Bank Tumbles After CEO Says Bank Won't Be Profitable

 

Weird.....that seems completely normal.

shovelhead's picture

File under:

Paying the cost to be the Boss.

Cuz, big swinging dicks just don't care about small change.

new game's picture

whole lotta kettles calling the pot black, ha

hey goldman, what say you?

Groundhog Day's picture

jeez if a banking license which in essence is a license to steal can;t make you money, the germans are screwed along with everyone else in the EU

TeamDepends's picture

Won't be profitable = Derivatives time bomb explodes

wildbad's picture

its AfDs fault that DB was Merkeled

TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) Mar 16, 2016 7:16 AM

Someone thought they would be profitable?

ghengis86's picture

When the asset side of your balance sheet is only limited by how fast you can write loans, how can you NOT be profitable? Oh yeah, when you're greedy as fuck and can't stop betting like a degenerate gambler, you fuck the goose that laid the golden egg in her ass and suffer the consequences (in theory).

thatthingcanfly's picture

Does that mean their traders won't get million dollar bonuses? That makes me feel sad.

Bill of Rights's picture

All that money and these ugly prick Billionaires / Millionaires can't even fix their appearance...women and children cower when these fucks walk into a room.

TeamDepends's picture

Looks like the guy is trying to pass a brick.

shovelhead's picture

Pro Tip:

Bolt down hand grabs beside the toilet.

new game's picture

lagged into studs, solid man solid...

TeamDepends's picture

"What the hell's goin' on in there John, you okay?"
"He's Cryan" (worker bees hysterical, apoplectic with laughter)

conscious being's picture

Only the crash can save us now, so bring it on. Same time of year as Bear Sterns.

Tall Tom's picture

Looking at the chart, if it follows an identical trajectory as Lehman Bros. then the forecast of collapse happens around July 1st...Three and a half months.

 

I guess they need to get their affairs in order. They have not that long to live.

overmedicatedundersexed's picture

wait - with a million new  muslems opening bank accounts how can this happen??

Debugas's picture

time for all those fatty rats to flee the sinking ship

mvsjcl's picture

Couldn't happen to a nicer bank.

silverer's picture

"...the market is not pleased..."
Well, what does the market expect? All the banks have pretty much run out of criminal moves to create profits where there are none. Go out and get a real job.

Sandmann's picture

How does a Bank which is out at the far end of the risk spectrum give speculators guaranteed bonuses ? Just how is it possible for such a bank to operate undercapitalised subs in jurisdictions around the world ? How is it that Shareholders are not provided with a Risk Assessment by Analysts such that ONLY very sophisticated investors buy this stock ?

blindfaith's picture

 

 

Those are questions only the Federal Reserve Bank and George Bush can answer.

Sandmann's picture

Paul Achleitner strikes again.........remember Dresdner Bank; remember MAN-Roland

Allen_H's picture

Profit and Deutsche Bank ? that's an oxymoron isn't it ?

Let the fucker burn !

redd_green's picture

So having a hedge fund "prop trading" leach stuck on the side of every bank is not such a good idea, then?  Who would have thought?

blindfaith's picture

 

 

Let see, a German bank comes to the US Federal Reserve Bank window and borrows free money at the US tax payers expense, turn around and loans that money nearly FREE to a hedge fund lets say BLACKSTONE to buy the houses that they, the banks, just foreclosed on.

 

Very sweet, to bad the American Public let themselves get raped over and over again and YET expect a better outcome each time.  America needs to put down the fancy phones, turn off the cable and BECOME SOMETHING.

 

RaceToTheBottom's picture

Yeah, maybe the person should start competing with Blackstone buying reposed houses and flipping them?

 

When you reward TBTF to act like assholes, you enable TBTF to be Assholes.   No room for anyone else to get into the game.

JailBanksters's picture

Is it really Profit, when you don't actually make anything and all you do is loan money that doesn't exist and sell things you don't actually own.

 

blindfaith's picture

 

 

Their scapegoat answer is.......'we used bad judgement'.  How many got away scott free with that line?

lemontree2's picture

Jailbankster. Lol . Thats how to run a business in keneysiian booming economy. Print your own money. Sell land you don't own.?

tncaver's picture

Germany will nationalize this bank before they let it fall.

Sandmann's picture

Germany is NOT allowed to nationalise DB under EU State Aid Rules plus - DB is largely in NYC and London

Mini-Me's picture

Someone is going to get screwed with DB's implosion.  I'll put money on the beleaguered German taxpayers.

Goldbugger's picture

Great PIC, Looks like he has to take a shit.

Batman11's picture

Confidence is all there is and when things are going badly you have to lie.

Imagine if someone from Deutsche Bank was foolish enough to tell the truth?

We saw it in Wall Street investment banks in 2008  ....

We are fine.

We are fine.

We are fine.

We are going under now, bail us out.

To tell the truth just brings the crunch forward.

By lying, a few more pay checks and bonuses may be collected.

Keep on lying, confidence is all there is.

Assuming he’s lying (fair assumption), how bad is it?

 

Batman11's picture

The losses reported are the ones they can't hide.

Imagine the reality.

venturen's picture

move to the USA and the FED will make you profitable! USA FOR CRONIES!

venturen's picture

If only a Deutsche Bank Employee ran the ECB..... They have been Goldmaned! 

Al Tinfoil's picture

It seems strange to me that Wolfie Schaeuble has not been featured on our news lately.  What does he say about DeutscheBank?