Variable compensation is one of several areas the bank has earmarked for further possible savings.
Bloomberg News reports that Deutsche Bank may cut bonuses if its revenue fails to grow, Chief Financial Officer James von Moltke said on Monday.
Variable compensation is one of several areas the lender has earmarked for further possible savings if necessary to achieve its profitability target, von Moltke said on a conference call with fixed-income investors. The reductions could be made if a challenging market environment makes it impossible for the bank to grow its top line, he indicated.
Deutsche Bank is planning to slash bonuses for 2018 by at least 10%, though a final decision depends on the fourth quarter performance, people familiar with the matter have said.
In the meantime, Reuters reports that Standard & Poor’s left its ratings on Deutsche Bank unchanged on Monday but said that raising its profitability is the biggest hurdle for the bank.
Deutsche Bank’s ratings have been under pressure from major agencies such as S&P as the bank restructures under new Chief Executive Christian Sewing who took charge last April.
Finally, Reuters also reports that Deutsche Bank has sharply scaled back its role as a correspondent bank, an executive said on Monday of a business line that has dragged it into a money laundering scandal involving Danske Bank.
Deutsche Bank’s global correspondent banking portfolio is now around 40% smaller than it was in 2016, Stephan Wilken, its head of anti-financial crime and anti-money laundering said.