Deutsche Bank AG’s Chief Executive Officer John Cryan has a positive vision for this year since their turnaround plan is showing positive results over their revenue after the downfall and misconduct accusations last year. Deutsche Bank is one of the largest investment banks and has better restructuring plans hidden in their kitty as of now. Deutsche Bank announced a new turnaround strategy two months ago of focusing on their home market by increasing their lending presence in the market. This would be possible when they club their retail business and reform their investment banking business.
The bank had reported losses for two consecutive months years due to their legal expenses and reduction in their security trading business. In fact, their share prices hit the lowest in September 2016. But all thanks to their restructuring strategies, they managed to rise high now with an 80 percent rise to 16.82 euros. But due to financial instability, they were forced to generate 8 billion euros through their shareholders. This has helped the bank to improve their financial situation and increase their stock prices in the market.
John Cryan has a very optimistic approach for progress but a strict concern for former executives.
John Cyran has shared his plans for improving the financial conditions and position of Deutsche Bank and called it “Project Oak Tree”. He commented that the bank needs to be focused on questing what they are doing and how can it be done and focus on the roots to make it sturdy again. There has been a lot of concerns about the financial position of the bank after the job cuts and Cryan is positive about gaining their client’s trust back and regain their lost position in the market.
HE also informed the shareholders that the bank would penalize all the former executives who were in charge when the bank got into those misconducting issues. The names of the executives have not yet been disclosed but the board has assured their shareholders about their firm decision to do so. The misconducting activities of issuing bonds backed by house mortgages cost $7.2 billion to the bank in a settlement with the U.S. Justice Department. Against which the payouts of all the people involved in it has been stopped.
Last month Deutsche Bank managed to enjoy a successful trading in their fixed-income trading but still consider that there is a long way to gain back the full trust of their clients. Many investors have changed their perception of the financial conditions of the bank after their spectacular success in recent times but commented that the bank should first resolve their pending legal cases and focus on achieving substantial growth.