German banking behemoth Deutsche has said the ongoing overhaul of the bank in the wake of regulatory changes means 2016 "will not be a profitable year", chief executive John Cryan told a Morgan Stanley organised conference in London this morning.
Investors have baulked at the announcement, sending the shares down five per cent in Frankfurt.
“There’s a lot of stuff we have to get done this year, so this year we’re not going to be profitable,” said Cryan. “We’ve said this year is not going to be a profitable year, we may make a small profit, we may make a small loss, we don’t know.”
Deutsche Bank has struggled this year to reassure investors it will be able to turn around the bank with Cryan coming under fire for litany of legacy scandals after joining last year.
The bank revealed its first full-year loss since the 2008 financial crisis in February, sparking a global sell off of banking stocks as fears around energy industry loans, lower for longer central bank interest rates, and the slowing of China and other emerging markets.
The bank has already announced plans to axe its workforce by a quarter following a record £1.7bn fine for rigging the Libor interest rate.