According to the German media, since Deutsche Bank initiated its ambitious project of corporate restructuring under its Chief Executive Officer John Cryan, the lender would be reporting its third consecutive annual loss for the last fiscal year of 2017.
In January, the bank had announced that the recent changes in the rates of corporate tax in the U.S. which was transformed into law by U.S. president Donald Trump would result in a "small loss after taxes" which had negatively surprised investors. The legislation in the U.S. would entail a one-time loss of 1.5 billion euros (1.86 billion U.S. dollars) for the Deutsche Bank.
In 2015, the bank had reported annual loss of 6.8 billion euros while in 2016, the loss was 1.4 billion euros. Despite this, the need to move ahead with the restructuring plans has been reiterated by Cryan.
"We always said that this restructuring would not be complete within one or two years," Cryan told the press. Cryan emphasized that "further lower our costs" was the crucial task of the bank. A number of costly legal settlements have been signed by the bank in order to fend of criminal persecution by financial authorities on allegations of fraudulent behavior and there has been a significant reduction in the number of employees at the bank ever since Cryan became the leader at the largest bank of Germany.
Investments in outdated IT systems along with the merger of Deutsche Bank and Postbank into one entity by the second quarter of 2018 was also announced by the top executive of the bank. However, there had been some angry reaction by the public on media reports that the bank would provide higher bonus payments to employees irrespective of the continued losses.
"Now is the time to invest in our people and remain internationally competitive, also with regards to salaries", Deutsche Bank's Co-Chief Executive Marcus Schenck subsequently defended the controversial step in the magazine "Focus".
Schenck added that his staff "were not to blame" for Trump's tax reforms and their one-off effect on Deutsche Bank's financial performance.
A number of global financial institutions have been concerned about the new U.S. fiscal legislation. There are two issues that trouble the financial institutions. The first is that under the new regulations, the profits that they make overseas and if the institution is registered in the U.S., then those profits would attract a one-time special tax. The second issue is that the new rules would not allow the institutions to effectively make use of the U.S. losses for the reduction of tax burdens in later years.
However, in the long run, the financial institutions would benefit from the lowering in the corporate tax rates from 35 percent to 21 percent which would be applicable correspondingly.
(Source:www.xinhuanet.com)
In January, the bank had announced that the recent changes in the rates of corporate tax in the U.S. which was transformed into law by U.S. president Donald Trump would result in a "small loss after taxes" which had negatively surprised investors. The legislation in the U.S. would entail a one-time loss of 1.5 billion euros (1.86 billion U.S. dollars) for the Deutsche Bank.
In 2015, the bank had reported annual loss of 6.8 billion euros while in 2016, the loss was 1.4 billion euros. Despite this, the need to move ahead with the restructuring plans has been reiterated by Cryan.
"We always said that this restructuring would not be complete within one or two years," Cryan told the press. Cryan emphasized that "further lower our costs" was the crucial task of the bank. A number of costly legal settlements have been signed by the bank in order to fend of criminal persecution by financial authorities on allegations of fraudulent behavior and there has been a significant reduction in the number of employees at the bank ever since Cryan became the leader at the largest bank of Germany.
Investments in outdated IT systems along with the merger of Deutsche Bank and Postbank into one entity by the second quarter of 2018 was also announced by the top executive of the bank. However, there had been some angry reaction by the public on media reports that the bank would provide higher bonus payments to employees irrespective of the continued losses.
"Now is the time to invest in our people and remain internationally competitive, also with regards to salaries", Deutsche Bank's Co-Chief Executive Marcus Schenck subsequently defended the controversial step in the magazine "Focus".
Schenck added that his staff "were not to blame" for Trump's tax reforms and their one-off effect on Deutsche Bank's financial performance.
A number of global financial institutions have been concerned about the new U.S. fiscal legislation. There are two issues that trouble the financial institutions. The first is that under the new regulations, the profits that they make overseas and if the institution is registered in the U.S., then those profits would attract a one-time special tax. The second issue is that the new rules would not allow the institutions to effectively make use of the U.S. losses for the reduction of tax burdens in later years.
However, in the long run, the financial institutions would benefit from the lowering in the corporate tax rates from 35 percent to 21 percent which would be applicable correspondingly.
(Source:www.xinhuanet.com)
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