For investors, John Cryan’s plan to revive profit at Deutsche Bank looks too much like the strategy that contributed to his predecessor’s departure: thin on details. The shares fell the most in two months.
Bloomberg News reports that the co-chief executive officer outlined measures to lift capital by eliminating its dividend for two years and shrinking assets, while lowering costs. What he didn’t provide was a path to growth as he scales back the investment bank and sheds businesses.
'What we’re really missing here is an idea of what is going to go so well for Deutsche Bank that they’re in a much better position in two years than they are today', said Michael Huenseler, who helps manage $17bn, including Deutsche Bank bonds, at Assenagon Asset Management in Munich. 'Right now, the perspective is pretty much only that they are going to be leaner and smaller'.
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