Germany’s Deutsche Bank AG on Wednesday said that it will not pay dividends this year and next year as it seeks to cut costs as part of a major business and management restructuring.
The Frankfurt-based lender said it hoped to resume paying dividends in 2017. It has paid a dividend every year since Germany’s postwar reconstruction, including throughout the 2008 to 2009 financial crisis.
The decision was made to help the bank meet new financial targets set for 2020, it said, which could only be achieved by withholding compensation for shareholders this year and next.
Deutsche Bank has been undergoing a massive shake-up after its former chief executives Anshu Jain and Juergen Fitschen resigned in June over a tangle of scandals and missed profit targets and were replaced by John Cryan.
Cryan is aiming to create a greater capital ratio — an indicator of strength and ability to withstand shocks — targeting a common equity Tier 1 capital ratio of 12.5 percent by 2018, compared with 11.4 percent at the end of June.
The bank is also seeking to cut expenses.
Deutsche Bank reported a 6.2 billion euro (US$7 billion) net loss in the third quarter, the largest three-month loss in at least a decade, as stricter capital requirements reduce the value of its investment bank and the firm reserved funds for legal costs.
Revenue from trading debt and currencies, the investment bank unit’s biggest component, rose to 20 percent to 1.73 billion euros last quarter, while equity trading revenue fell 19 percent to 588 million euros, the company said in a statement yesterday.
The bank is currently embroiled in about 6,000 different legal cases and was fined in May a record US$2.5 billion for its involvement in rigging interest rates.
The EU and US are nearing an agreement to coordinate on producing and securing critical minerals, part of a push to break reliance on Chinese supplies. The potential deal would create incentives, such as minimum prices, that could advantage non-Chinese suppliers, according to a draft of an “action plan” seen by Bloomberg. The EU and US would also cooperate on standards, investments and joint projects, as well as coordinate on any supply disruptions by countries like China. The two sides are additionally seeking other “like-minded partners” to join a multicountry accord to help create these new critical mineral supply chains, which feed into
Elon Musk’s lieutenants have reached out to chip industry suppliers, including Applied Materials Inc, Tokyo Electron Ltd and Lam Research Corp, for his envisioned Terafab, early steps in an audacious and likely arduous attempt to break into the production of cutting-edge chips. Staff working for the joint venture between Tesla Inc and Space Exploration Technologies Corp (SpaceX) have sought price quotes and delivery times for an array of chipmaking gear, people familiar with the matter said. In past weeks, they’ve contacted makers of photomasks, substrates, etchers, depositors, cleaning devices, testers and other tools, according to the people, who asked not to
Japan approved ￥631.5 billion (US$3.97 billion) in additional subsidies to hasten Rapidus Corp’s entry into the high-stakes artificial intelligence (AI) chipmaking arena, ramping up support for a project widely regarded as a long shot. The capital is intended to bankroll Rapidus’ work for information technology firm Fujitsu Ltd, one of the initial customers that Tokyo hopes would get the signature endeavor off the ground. The new money raises the fees and investments that the government is injecting into the start-up to ￥2.6 trillion by the end of the current fiscal year to March next year, the Japanese Ministry of Economy, Trade and
The founder of Chinese property giant Evergrande Group (恆大集團) has pleaded guilty to charges of fraud and bribery, a court said yesterday, the latest blow for what was once the country’s leading developer. Evergrande’s rise was propelled by decades of rapid urbanization and rising living standards, but in 2020, its access to credit dramatically narrowed when the government introduced curbs on excessive borrowing and speculation. The company defaulted in 2021 after struggling to repay creditors. Founder Xu Jiayin (許家印), 67, known as Hui Ka Yan in Cantonese, was reportedly held by police in 2023, with Evergrande saying he had been subjected to
RSS