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4 Reasons Deutsche Bank Will Be Okay, According To CEO John Cryan

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4 Reasons Deutsche Bank Will Be Okay, According To CEO John Cryan

Deutsche Bank AG (NYSE: DB) CEO John Cryan wrote a memo sent to all of the bank's employees.

Cryan started off by pointing out media reports of clients reducing activity with the bank is "causing unjustified concerns" given the fact that the company has more than 20 million clients.

Cryan added that while the "extensive coverage" of the issue is a legitimate concern, Deutsche Bank has "become subject to speculation" and "ongoing rumors are causing significant swings in our stock price."

Related Link: Deutsche Bank's Fate Might Be In The Hands Of These 10 People

Cryan continued with four key points which support his claims that fundamentals remain "strong":

1. All current capital requirements are fulfilled and the bank's restructuring plan is "well on track."

2. The bank has "significantly" decreased its market and credit risk and at no point over the past 20 years has its balance sheet been "as stable as it is today."

3. Despite the "difficult environment" the firm still posted a pre-tax profit of around 1 billion euros in the first half of 2016.

4. Deutsche Bank's liquidity reserves amount to more than 215 billion euros - an "extremely comfortable buffer."

"There is therefore no basis for this speculation," Cryan concluded. "Nor can uncertainty about the outcome of our litigation cases in the US explain this pressure on our stock price, if we take the settlements of our peers as a benchmark."

After falling more than 6 percent Thursday, share were ticking up about 1.3 percent in pre-market trading.

Posted-In: Deutsche Bank Deutsche Bank Liquidity Deutsche Bank Memo John CryanNews Hedge Funds General Best of Benzinga

 

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