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CEO John Cryan, in an interview with the Boersen-Zeitung
newspaper published on Saturday, also welcomed plans by Britain
to spare European banks costly capital rules after Brexit. But
staff were still analyzing any potential costs of U.S. tax
reform, he said.
Bonus payments at Deutsche Bank fell to 546 million euros in
2016 from 2.4 billion euros a year earlier after a multi-billion
dollar legal fine for the sale of toxic debt.
"We always said that we would return to our normal system of
variable compensation in 2017," Cryan told the newspaper. "And
we will also raise salaries in some areas," he said, without
providing more detail.
The still fragile state of Germany's biggest bank was underlined
when it reported a drop of almost 25 percent in third quarter
investment bank revenue and a drop of more than a third in its
bond trading division.
In addition to weak earnings, the bank has been grappling with
the uncertainty of Britain's decision to leave the European
Union.
This month, the Bank of England said that it was planning to
allow large foreign banks after Brexit to operate as branches in
Britain rather than as subsidiaries that would require
significant capital.
The decision "gives us more planning certainty", Cryan said.
Deutsche Bank has 9,000 staff in London.
The newspaper asked Cryan whether the bank also expects to take
a tax write-down like Credit Suisse <CSGN.S> following changes
to the U.S. tax system.
Credit Suisse said last week that it expected a write-down of
2.3 billion Swiss francs ($2.3 billion) during its 2017 fourth
quarter.
"We will also be affected," Cryan said. He declined to offer a
concrete prognosis, saying that the bank was still analyzing the
effects of the tax code.
(Reporting by Tom Sims; editing by Jason Neely)
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