Although at one point they were seven percent up, Deutsche Bank stocks finished the day almost four percent higher than the starting point. Key factor for this big jump are the resignations of two co-chief executives. This moment that was gladly accepted by investors all over Europe.
The meeting held on Sunday had an emergency label on it, so Jurgen Fitschen’s and Anshu Jain’s resignations weren’t a big surprise as they would’ve been in some other occasion.
A big list of nonprofessional scandals and moves in the last year is supposed to be the main reason for the change. Just a reminder, Deutsche Bank got a penalty fine of two and a half billion dollars because of their role in the Libor inter – bank lending rate. Another big problem is the fifty five million dollars fine to end the civil charges for miss-stating financial reports.
The financial performance inside the bank is also on a disappointing level, so if we add that to the legal problems, the change is not surprising. For the first six months of this year, Deutsche Bank’s incomes are 559 million euros lower in comparison to the first half of last year. Revenue raised for a quarter to 10.4 billion euros, so there is no excuse for this sort of results.
After Mr. Fitshen’s departure scheduled for May next year, John Cryan is going to become sole chief executive of Deutsche Bank.