Deutsche Bank posted a Q4 net loss of €2.1 billion huge and whole year net loss of approximately €6.8 billion (£5.1 billion, $7.4 billion) loss for 2015. The huge loss is its first annual loss since 2008.
Deutsche Bank's supervisory board further confirmed that the management board would get no bonuses for 2015 due to the poor performance.
"In 2015 we made considerable progress on the implementation of our strategy. The much needed decisions we took in the second half of the year contributed to a net loss for the fourth quarter and full year,"
"We are focused on 2016 and continue to work hard to clear up our legacy issues. Restructuring work and investment in our platform will continue throughout the year.
"We know that periods of restructuring can be challenging. However, I’m confident that by continuing to implement our strategy in a disciplined manner, we can and will transform Deutsche Bank into a stronger, more efficient, and better run institution." said John Cryan, Deutsche Bank's co-CEO.
However, the CFO of Deutsche Bank, Marcus Schenck has said that he expects 2018 to be the first "clean" year for the bank. With the record loss in 2015, the German lender struggles with litigation charges and organization restructuring cost. It’s possible that the managing team could flip the situation around in 2018.
In October, the financial institution announced major restructuring plans, such as reducing the amount of employees and pulling out of 10 countries. In addition, the bank wants to cut half of its current clients in the global markets and investment banking business.
This result comes after global equity markets with a dramatically tough start in 2016, such as China slowdown fears and oil price weakness. Nonetheless, the German Bank’s performance is still worse than many of its investment banking counterparts.
Deutsche Bank will release its final financial statements on March 11.