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| Deutsche Bank Reports Huge Loss for 2019 | Deutsche Bank Reports Huge Loss for 2019 |
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| FRANKFURT — 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. | FRANKFURT — 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. In 2018, the bank effectively broke even for the year and in the fourth quarter. | 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. 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 have caused its share price to plummet more than 90 percent since 2007. | 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 have caused its share price to plummet more than 90 percent since 2007. |
| Deutsche Bank is also emblematic of the state of European banks, many of which are still struggling with the consequences of a financial crisis more than a decade ago. Most banks in Europe don’t earn enough profit to cover what it costs them to raise money, the European Central Bank said this week in an assessment of the eurozone’s most important lenders. | Deutsche Bank is also emblematic of the state of European banks, many of which are still struggling with the consequences of a financial crisis more than a decade ago. Most banks in Europe don’t earn enough profit to cover what it costs them to raise money, the European Central Bank said this week in an assessment of the eurozone’s most important lenders. |
| Deutsche Bank portrayed its loss as a resolute attempt to deal with mistakes of the past. 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. | Deutsche Bank portrayed its loss as a resolute attempt to deal with mistakes of the past. 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.” | “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.” |
| Mr. Sewing said the company was 70 percent through a restructuring program that, though costly in the short term, would deliver consistent profits. | Mr. Sewing said the company was 70 percent through a restructuring program that, though costly in the short term, would deliver consistent profits. |
| “I stand in front of you in a very optimistic frame of mind,” he said at a news conference in Frankfurt. “We have taken a series of landmark decisions and made good progress with the most radical transformation of Deutsche Bank for two decades.” | “I stand in front of you in a very optimistic frame of mind,” he said at a news conference in Frankfurt. “We have taken a series of landmark decisions and made good progress with the most radical transformation of Deutsche Bank for two decades.” |
| Shares of the bank rose 6 percent on Thursday; they have been a good investment for anyone who bought the stock when it hit bottom in August. Since then, the shares have risen 44 percent, though they are still worth only a sliver of their value a decade ago. | |
| Filippo Alloatti, a senior credit analyst at Hermes Investment Management, said Deutsche Bank had made progress reducing risk and becoming more efficient. “Costs are for the moment under control,” Mr. Alloatti said in an email. | Filippo Alloatti, a senior credit analyst at Hermes Investment Management, said Deutsche Bank had made progress reducing risk and becoming more efficient. “Costs are for the moment under control,” Mr. Alloatti said in an email. |
| At the same time, investors will be keeping a close eye on whether Deutsche Bank can maintain revenue even as it shrinks, he said. Revenue slipped 4 percent in the last three months of 2019 compared with a year earlier, to €5.4 billion. | At the same time, investors will be keeping a close eye on whether Deutsche Bank can maintain revenue even as it shrinks, he said. Revenue slipped 4 percent in the last three months of 2019 compared with a year earlier, to €5.4 billion. |
| Until Mr. Sewing, an expert in risk management, took over in 2018, Deutsche Bank was led by investment bankers reluctant to make drastic changes to the company’s aggressive moneymaking strategies. Since then, the bank has scaled back its ambitions. | Until Mr. Sewing, an expert in risk management, took over in 2018, Deutsche Bank was led by investment bankers reluctant to make drastic changes to the company’s aggressive moneymaking strategies. Since then, the bank has scaled back its ambitions. |
| After it acquired Wall Street’s Bankers Trust in 1999, Deutsche Bank aspired to be in a league with American megabanks like Goldman Sachs and JPMorgan Chase. But it did so by taking chances, including issuing hundreds of billions of dollars in high-risk derivatives. It lent money to Donald J. Trump’s organization when other banks wouldn’t. | After it acquired Wall Street’s Bankers Trust in 1999, Deutsche Bank aspired to be in a league with American megabanks like Goldman Sachs and JPMorgan Chase. But it did so by taking chances, including issuing hundreds of billions of dollars in high-risk derivatives. It lent money to Donald J. Trump’s organization when other banks wouldn’t. |
| The 2008 financial crisis exposed a series of wrongdoings, including rigged interest rates, laundered money and violations of United States sanctions against countries like Iran. The scandals damaged Deutsche Bank’s reputation and led to billions of dollars in fines. Regulators anxious to avoid more financial crises forced Deutsche Bank and other lenders to take fewer risks. | The 2008 financial crisis exposed a series of wrongdoings, including rigged interest rates, laundered money and violations of United States sanctions against countries like Iran. The scandals damaged Deutsche Bank’s reputation and led to billions of dollars in fines. Regulators anxious to avoid more financial crises forced Deutsche Bank and other lenders to take fewer risks. |
| The bank, which once symbolized German economic prowess, is now focusing on less glamorous and less hazardous businesses like helping German exporters manage financial transactions abroad. Deutsche Bank is closing or shrinking operations that sell stocks, and has quarantined risky assets in a separate unit. | The bank, which once symbolized German economic prowess, is now focusing on less glamorous and less hazardous businesses like helping German exporters manage financial transactions abroad. Deutsche Bank is closing or shrinking operations that sell stocks, and has quarantined risky assets in a separate unit. |
| Other big European banks, like UBS of Switzerland and Barclays in Britain, scaled back their operations after the 2008 financial crisis, but Deutsche Bank clung to investment banking even as it continued to generate billions of euros in losses. | Other big European banks, like UBS of Switzerland and Barclays in Britain, scaled back their operations after the 2008 financial crisis, but Deutsche Bank clung to investment banking even as it continued to generate billions of euros in losses. |
| The bank has not completely abandoned investment banking. It reported a sharp increase in sales from trading bonds and other debt. But Mr. Sewing said the bank had not changed course on investment banking. | The bank has not completely abandoned investment banking. It reported a sharp increase in sales from trading bonds and other debt. But Mr. Sewing said the bank had not changed course on investment banking. |
| “We have not shifted any resources into the investment bank,” he said. | “We have not shifted any resources into the investment bank,” he said. |
| Deutsche Bank also emphasized that it was sticking with the United States market, despite its long history of problems with American regulators who criticized the bank for weak internal controls. | Deutsche Bank also emphasized that it was sticking with the United States market, despite its long history of problems with American regulators who criticized the bank for weak internal controls. |
| “In order to be successful, Deutsche Bank needs to be global, with a meaningful footprint in the U.S.,” said Christiana Riley, chief executive of the bank’s American operations. “There is no other market like the U.S.” | “In order to be successful, Deutsche Bank needs to be global, with a meaningful footprint in the U.S.,” said Christiana Riley, chief executive of the bank’s American operations. “There is no other market like the U.S.” |