Deutsche Bank to cut bonuses after poor year

Written by Oliver Wade

Deutsche Bank is set to slash its bonus pool by approximately 10 per cent after a tough year for Germany’s largest bank.

It has also been speculated by Bloomberg the bank’s board could be more selective in its bonus pay in an attempt to keep its highest earners.

In 2017, the German lender handed out £2bn in bonuses, but that figure could be set for a double-digit fall following less than impressive third quarter results, which saw revenue in its investment banking arm plummet by 15 per cent.

However, plans to slash its bonus put could potentially be changed if the bank’s fourth quarter results, due to be published next month, significantly improve. The bonus figures will be finalised and revealed in March.

Deutsche Bank’s share price slumped by more than 50 per cent in 2018, during which it was hauled into the Danske Bank money-laundering scandal. The bank admitted to processing payments for Danske Bank but claimed it terminated the relationship in 2015 after it identified “suspicious activity”.

Shortly after the arrival of the bank’s chief executive Christian Sewing, it announced plans to slash more than 7,000 jobs as part of a major restructuring plan, primarily in its struggling investment banking division.

Deutsche expanded its cost-cutting plan in November, revising its own target of bringing down expenses to €21bn by 2021.

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