Deutsche Bank (DB) Q3 2016 Earnings Call

posted in: Earnings Call, Notes | 0

John Cryan – CEO

The uncertainties have affected them greatly

“…the quarter was clearly overshadowed by the attention paid to our negotiations concerning the US Department of Justice’s initial settlement proposal relating to RMBS matters. This has created uncertainty. Uncertainty that affects the market’s view of Deutsche Bank as an investment. Uncertainty that affected some clients’ view of Deutsche Bank as a counterparty. And uncertainty that even affects our financial planning and strategy execution. We remain keen to settle these and other open matters with US authorities…We must remove the overhang from our litigation cases and the regulatory investigations by settling those matters, remains top priority. ”

Brexit Impact on consumer markets

“The macroeconomic and geopolitical outlook has worsened over the past year. What´s particularly true is that the challenging interest rate environment in Europe seems unlikely to change in the short to medium term and the demands for regulatory capital continue to build.”

Spending time with clients to put their minds at ease

“To dispel any myths, I don’t just sit poring over spreadsheets, which some people just [think is] my personality. I’d like to spend – I got a personal rule that I have to spend at least an hour a day with clients. And I do spend an awful lot of time with people who are sometimes counterparts, competitors, vendors, also to stakeholders in the bank.”

They expect a decline revenues

“We do see a diminution in revenues across many of our businesses. As Marcus said, a lot of that driven by negative interest rates but not just. We don’t know how much new business was impacted. We can take stabs with it. But we know that when our name is in the headlines for the wrong reasons, the phone doesn’t ring as frequently. We don’t know how frequently it would have rung had the name not been in the headlines. So, expect some revenue attrition, but we work hard on it, and it’s a credit to our people and their tenacity that they’ve gone out there and raise revenues on the quarter-on-quarter basis.”

 

 

Notes partly from Business Insider.