Bank managing SOFAZ assets faces serious loss

Baku. 2 December. REPORT.AZ/ German Deutsche Bank lost 1.89 bln EUR (1.94 bln) in fourth quarter of 2016. 

Report informs referring to Bloomberg, the loss exceeded 1.32 bln EUR (1.43 bln USD) predicted by experts.

Notably, Deutsche Bank’s subsidiary Deutsche Asset & Wealth Management International GmbH manages part of assets of State Oil Fund of Azerbaijan (SOFAZ).

Bank’s executive director John Cryan decided to reduce bonuses and cut thousands of employees to raise profitability and enhance capital. Notably, Deutsche Bank has been charged to pay about 8 bln USD fine for speculative operations with US mortgage securities and “mutual” operations in Russian stock market.

Landesbank Baden Wurttemberg analyst Ingo Frommen thinks Deutshe Bank still has capital shortage and unpredictable developments can cause problems to the it. 

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