Jan 29 - The reputational risks surrounding Deutsche Bank have grown and it still has some way to go to win back public trust and prove it can overhaul its corporate culture. That's according to the bank's co-CEO's. David Pollard reports.
There aren't many financial scandals Deutsche Bank HASN'T been involved in. The alleged manipulation of foreign exchange markets is the latest. And the costs of litigation and fines in recent months have been huge. There was a 2.1 billion euro fine just last month and the total bill could be more than double that by the end of 2015. Rebuilding the bank's reputation and restoring public trust is going to be hard, says CEO Anshu Jain. SOUNDBITE (English) DEUTSCHE BANK CHIEF EXECUTIVE, ANSHU JAIN, SAYING: "We have a couple of very important investigations, which will be completed in 2014, once those are done, we take the steps we have to take.'' The revolution involves a shake-up of corporate practices, particularly on the investment side. They'll be no more high risk deals and some bonuses will be deferred to give dealers less leeway on trades. The changes have lost the bank business but Jurgen Fitschen believes the price is worth paying. SOUNDBITE (German) DEUTSCHE BANK CHIEF EXECUTIVE, JUERGEN FITSCHEN, SAYING: "We are today where we wanted to see ourselves. We are at a point where we're able to say that we can see today what we were aiming for 17 months ago as the way forward." But doubts remain about the ability of the bank's co-CEOs to lead the reform. Jain once headed the problematic investment arm at Deutsche and Fitschen is still embroiled in a tax evasion investigation. They're both vowing to ride the storm and stick to ambitious earnings goals. They expect a 12% return on equity next year, that's six times higher than last year, while still shrinking balance sheets by 250 billion euros.