CEO: Despite Setbacks, Deutsche Bank Focuses Back On Growth Again

The CEO of embattled German banking giant Deutsche Bank AG (USA) (NYSE:DB) said Friday in a letter to staff that his downsizing efforts have been completed, and that a new era of growth is beginning.

The message, posted on DB’s website, comes after last month’s massive 8 billion euro share offering, which was aimed at boosting the company’s capital position. Deutsche has been subject to billions in fines from U.S. and European regulators in recent months and years, stemming from both old and new market improprieties.

“It is clear that we will not succeed by shrinking further,” chief executive John Cryan said in the statement. “Our capital increase should eliminate any remaining doubt about Deutsche Bank’s stability. This is why it’s even more important to focus on a topic that has been in the background for quite some time: growth.”

He made sure to add that the bank would be taking a much more prudent approach to its growth efforts, however.

“None of us want to generate revenues that will need to be paid back in future, for example due to litigation costs. None of us want to experience a multi-billion dollar request arising from this ever again,” Cryan said, referencing the string of fines it’s faced over alleged market manipulations and other rule violations.

Deutsche recently reached out to European and U.S. investors to gauge their sentiment about the bank, and found plenty of skepticism in both regions, although U.S. investors were more positive.

Cryan concluded with a note that investors now “expect us to turn a corner” back toward growth.

The letter did little to inspire investors, at least initially. Deutsche Bank AG (USA) (NYSE:DB) was trading at $16.40 per share on Friday morning, down $0.20 (-1.20%). Year-to-date, DB has declined -9.39%, versus a 5.25% rise in the benchmark S&P 500 index during the same period.

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