Deutsche Bank, which runs Europe’s biggest investment bank, cut its bonus pool by 11% after rising legal expenses hurt earnings last year and said volatility in financial markets means the first quarter may be challenging.
Bloomberg News reports that the company will pay $2.69bn of bonuses for last year, down from around $3bn, it said in a statement from Frankfurt on Friday. Variable compensation at the investment banking and trading unit fell 15% to 1.45 billion euros. At constant exchange rates, the declines were 17% and 20%, respectively, Deutsche Bank said.
Co-Chief Executive Officer John Cryan, 55, who took over from Anshu Jain in July, is working to boost capital levels and profitability to reverse a slump that has made Deutsche Bank the worst-valued major global lender. Rising provisions for past misconduct have hurt the lender’s financial strength, sapping more than the $12.7bn in equity it raised from investors in 2014 and 2013.
While Deutsche Bank is seeking to award staff compensations that allows it to compete for talent with other banks, the company will be “underpaying against our international peer group” for last year, Cryan said in January.
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