(MENAFN) Chancellor Olaf Scholes has reassured the public that Deutsche Bank remains profitable and there is no reason to doubt its future amid a sharp drop in the bank’s share price. During a press conference in Brussels, Scholes said Deutsche Bank has completely restructured and modernized its business model, making it the most profitable bank. However, bank stocks fell sharply in Europe on Friday, with Deutsche Bank and UBS Group hit by concerns that the sector’s worst troubles since the 2008 financial crisis have yet to be contained.
Deutsche Bank’s share price fell more than 12% for a third day after the cost of insuring the bank’s debt rose sharply. The cost of its five-year credit default swaps (CDS), a form of insurance for bondholders, also rose to a four-year high, according to data from S&P Market Intelligence. Shares of Germany’s largest bank are down more than a fifth so far this month, raising concerns about the bank’s future.
Commenting on Deutsche Bank’s situation, Stuart Cole, chief economist at Equiti Capital, said the bank has been in the spotlight for some time, as has Credit Suisse. Deutsche Bank has gone through a series of reorganizations and leadership changes to try to put it back on a solid footing, but so far none of those efforts have really worked, he said.
Despite these concerns, Chancellor Scholes’ reassurance about Deutsche Bank’s profitability gives investors some hope. However, the situation remains uncertain and it is unclear whether Deutsche Bank can recover from this recent setback. The global banking industry is facing major challenges and it remains to be seen whether banks like Deutsche Bank can successfully navigate the current economic environment.
MENAFN26032023000045012476ID1105862674
Disclaimer:
MENAFN PROVIDES THE INFORMATION “AS IS” WITHOUT WARRANTIES OF ANY KIND. We assume no responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality or reliability of any information contained in this article. If you have any complaints or copyright issues regarding this item, please contact the vendor above.
“Incurable internet addiction. Award-winning beer expert. travel expert. General Analyst.”
