Deutsche Bank unveiled a record loss for the third quarter of this year.
The German lender reported a net loss of €6 billion (£4.3 billion, $US6.6 billion) with €1.2 billion of that being for litigation charges.
Its litigation reserves now top €4.8 billion.
Revenues were down by 7% in the third quarter, compared to the same period last year, reaching € 7.3 billion mainly due to the bank’s stake in China’s Hua Xia Bank.
And newly installed CEO John Cryan is taking drastic steps to turn the beleaguered bank around — he’s cutting around 30,000 jobs over the next two years and making the lender exit 10 countries.
The Financial Times says Deutsche Bank is axing 30,000 jobs in total — 9,000 of its own staff, 6,000 consultants that advise the bank, 15,000 from its Postbank subsidiary sell-off. However, the Wall Street Journal reports a 36,000 cut in headcount, while CNBC says 15,000 roles will be reduced. Bloomberg reports 26,000 jobs will be lost over two years.
Reuters added another set of numbers into the mix and said on its newswires that on top of the 9,000 full-time jobs and 6,000 reduction in contractor roles, around 20,000 jobs will be axed will be cut from its Postbank subsidiary when it sells it off and from other “external assets.”
On a conference call, the FT said Cryan told analysts and reporters about the bank is on course to execute its plan:
Sadly, this also means closing some of our branches and country locations, and reducing some of our front-office and infrastructure staff too. This is never an easy task, and we will not do so lightly. I promise that we will take great care in this process, moving forward together with our workers’ representatives.
The FT reports Deutsche Bank exiting Argentina, Chile, Peru, Mexico and Uruguay, Denmark, Finland, Norway, Malta, New Zealand, and is shifting its Brazilian trading operations to other “global and regional centres.”
The terrible results don’t come as too much of a surprise, considering Cryan said 24 hours ago that the bank would scrap dividends for 2015 and 2016 while it concentrates on bringing the bank back to profitability.