Deutsche Bank to replace CFO after posting €92 million loss
Chief financial officer Stefan Krause to be replaced by top Goldman Sachs exec
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Deutsche Bank lost 92 million euros ($116 million) in the third quarter as the bank faced ongoing financial burdens from lawsuits, new regulations and its effort to shed risky past investments.
Germany's biggest bank also said that it would move its chief financial officer, Stefan Krause, to a new job in charge of strategy and replace him with a Goldman Sachs executive.
The net loss for the quarter ending September compares to a profit of 51 million euros in the same period a year ago, and to a profit of 238 million in the second quarter. Net third-quarter revenues rose 2 percent to 7.864 billion.
The bank said that set-asides for possible losses from litigation against it had also "materially impacted" its result.
Deutsche Bank has faced costs from investigations into allegations of past misconduct, including probes of possible manipulation of interest-rate and foreign exchange benchmarks. It has also come under regulatory and market pressure to strengthen its finances, leading the bank to raise 8.5 billion euros in June by issuing new shares.
Along with other big banks, Deutsche Bank has had to devote employee time to compliance with increasing government regulations aimed at stabilizing the banking system and preventing more financial crises.
Those included the year-long comprehensive review of bank finances by the European Central Bank, which concluded Sunday. The ECB went through thousands of individual loan portfolios to test whether bank assets were as solid as reported.Deutsche Bank passed the test.
Compensation and benefits were up by 285 million euros, or 10 percent, from 3.2 billion euros a year ago. The bank said that was from fixed compensation costs for complying with regulations as well as hiring additional staff in control functions.
As part of the effort to strengthen its finances, the bank recorded 1.049 billion euros in losses during the quarter from its non-core operations unit. That is where it has placed risky assets and investments that it is selling off or winding down to strengthen its overall finances.
The bank said it would bring in Marcus Schenk, 48, from Goldman Sachs to serve as deputy chief financial officer, taking over as chief financial officer at the bank's annual meeting on May 21, 2015.
Krause, 51, will serve as CFO until then before moving to a new position as head of strategy and major change initiatives at the bank. Deutsche also created a new top post for legal issues, saying it wanted to sharpen management's focus on the resolution of its legal troubles.
AP
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments