Deutsche Bank AG Chief Executive Officer Christian Sewing is showing signs of steadying the lender after a bitter boardroom battle. He now faces the same challenge that eluded his predecessor: how to boost revenue after slashing costs and cutting thousands of jobs.
The German lender on Wednesday reported its lowest third-quarter revenue since 2010 and now predicts a slight decline for the full year, after earlier guiding for a flat result. While cost cuts should help the bank post its first annual profit in four years, Sewing said the focus now has to be on growing the top line without compromising controls, according to Bloomberg.
Source: DB quarterly reports
“We made headway on our cost reductions,” Sewing wrote in a memo to employees. “On the other hand we have not yet achieved a turnaround in terms of revenues.”
“Costs are in line with targets,” said Daniel Regli, an analyst with MainFirst who has a hold recommendation on the stock. “But there is continued weakness in investment bank revenue. That needs to be fixed.”
Source:DB quarterly reports
Sewing is cutting at least 7,000 jobs and retrenching in investment-banking areas such as prime finance, U.S. rates and corporate finance in the U.S. and Asia. The bank cut another 700 positions in the third quarter after eliminating about 1,700 jobs in the three months through June, according to Bloomberg.
Now let’s look at the chart. We are trading near the all time low. When the market breaks, there is a big possibility of fall to marked levels. Indicators don’t look well. RSI is rotating down and MACD seems, that there is matter of time to be crossed.