Deutsche Bank’s CEO thinks that the major restructuring of the German bank will lead to higher returns for shareholders, despite the low interest rates and the weakening economy. Christian Sewing said that at a banking conference in Frankfurt.
Deutsche Bank is scrapping 18,000 jobs to save billions in costs and is phasing out its trading activities. This lays the foundation for future growth, while the financial group is prepared for economic cooling, Sewing said. “No one doubts that we are going in the right direction with the new plans,” said the CEO.
To underline Sewing ‘confidence in Deutsche Bank, it was announced on Monday that in the coming years he will use 15 percent of his net monthly salary to buy shares in the company. This purchase runs from September to December 2022. That would amount to a total amount of approximately 850,000 euros.
Germany’s largest bank has been in heavy weather for some time, with a fall in stock prices, large losses and high fines for past abuses. Earlier this year, merger talks between Commerzbank and Deutsche Bank went wrong.
Sewing further criticized the possibility of a new interest rate cut by the European Central Bank (ECB). According to him, the low interest rates ruin the financial system in the longer term, whereby banks have to invest money on funds they deposit with the ECB. According to Sewing, Deutsche Bank is talking about many millions every year. At the same time, savers are punished because they hardly receive any interest on their savings accounts, Sewing said.