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 "We all know that restructuring can be very challenging. It takes
time, resolve and patience," Cryan said, as Deutsche reported
fourth-quarter earnings. They included a 1.2 billion euro ($1.30 bln)
loss in its investment bank, hit by legal costs and weak bond
trading.
Cryan acknowledged that the bank had lost ground in equities and
pledged to invest in its research and sales units to recover market
share.
The bank's supervisory board had decided Wednesday that the
executive board will not receive any bonus for 2015, he said.
Deutsche Bank shares hit a seven-year low after the lender flagged
the loss last week, adding to a near 40 percent drop in the share
price since Cryan took the helm in July.
"The further writeoffs announced raise the issue of capital again,"
the head of European equities at a fund firm which sold out of
Deutsche Bank shares in late 2015 said, without wishing to be
identified.
Cryan stressed that at this stage, Deutsche Bank is not planning to
increase its capital.
Restructuring was hurting employee morale, he said, but he was
confident that sticking to the bank's strategy would deliver
results.
"We can and will transform Deutsche Bank into a stronger, more
efficient and better-run institution," he told the bank's annual
press conference. "It does not happen overnight."
Restructuring and severance charges will reach about 1 billion euros
in 2016 and litigation costs will stay high, albeit below the 5.2
billion euros it spent in 2015, the bank said. Savings would help
keep adjusted costs flat and no further writedowns are to be
expected, it said.
Like other investment banks, Deutsche Bank struggled with near-zero
interest rates, a slump in oil prices and investor caution due to
worries about slowing growth in China, but analysts have said
Deutsche's revenue performance appeared weaker than that of its U.S.
peers.
Deutsche Bank's final results showed a full-year loss of 6.8 billion
euros and a fourth-quarter loss of 2.1 billion euros, mainly due to
writedowns, litigation charges and restructuring costs.
By contrast, lower costs helped peers such as Citi <C.N>, Bank of
America <BAC.N>, JPMorgan <JPM.N> and Morgan Stanley <MS.N> report
higher fourth-quarter profits.
"It's hard to stand up and smile a lot," Cryan said. "Not every day
is easy but we can see light at the end of the tunnel."
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In the fourth quarter, revenue at the investment bank fell by 30
percent, with equities trading as well as advisory activities
contributing to the slowdown.
"I recognize that in the fourth quarter we lost some momentum in
sales and trading," Cryan said.
"I am not so concerned about debt sales and trading where we are
choosing to exit some capital intensive businesses," he said, but
added: "We do believe we have lost some ground in equities."
Deutsche's retail banking activities fell to a quarterly loss,
mainly on restructuring costs.
COMMITTED TO ASIA EXPANSION
Deutsche shares were down 2.5 percent at 1101 GMT, underperforming a
0.8 percent drop in Germany's blue-chip index.
In October, the bank announced a restructuring of its business,
splitting its investment bank in two and parting ways with some of
its top bankers.
The bank's staff are bracing for pay cuts as bonus pots for
individual divisions are being cut by at least 25 to 30 percent,
people familiar with the matter said this week.
While Deutsche has pulled back from a number of countries, the
lender remains committed to grow its business in Asia, co-CEO
Juergen Fitschen said, adding that revenues grew by 14 percent in
the region last year, while earnings tripled over the last three
years.
On taking the helm on July 1, Cryan promised simultaneously to
overhaul Deutsche to meet tighter banking rules and to end costly
litigation from past scandals.
(Additional reporting by Simon Jessop; Editing by Maria Sheahan and
Susan Fenton)
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