Deutsche Bank AG Chief Executive Officer Christian Sewing said he’s optimistic that the bank will beat its own revenue targets over the next three years, while arguing that efforts to strengthen control procedures need to be intensified.
(Bloomberg) — Deutsche Bank AG Chief Executive Officer Christian Sewing said he’s optimistic that the bank will beat its own revenue targets over the next three years, while arguing that efforts to strengthen control procedures need to be intensified.
The lender’s top line is likely to “convincingly exceed” the goal of about 30 billion euros ($32.9 billion) in 2025 that it has promised to achieve, Sewing said in remarks prepared for the annual general meeting next week, and published on Tuesday.
He also said that Deutsche Bank’s profitability by then will probably be significantly above the minimum of 10% return on tangible equity that was promised to investors as well.
Sewing has just completed a four-year turnaround that has helped to boost profitability to levels not seen in over a decade.
He has now resumed investor payouts and recently agreed the firm’s biggest acquisition since 2009.
Read More: Deutsche Bank Emulates JPMorgan in First Big Deal Under Sewing
But Deutsche Bank continues to be dogged by deficiencies in its controls that regulators have been criticizing for years.
The lender has stepped up investment to address the issue, contributing to several missed cost targets. Sewing said that the bank needs to “remedy more quickly” the control shortcomings identified by its supervisors.
Among other things, the lender has been criticized by the European Central Bank for the perceived narrowness of an internal probe into alleged derivatives mis-selling, Bloomberg has reported.
In addition, its investment arm DWS Group is the target of regulatory investigations in the US and Germany over greenwashing in the US and Germany.
In the prepared remarks, Sewing also said he’s “dissatisfied” with Deutsche Bank’s share price, which is still below the level it was when he assumed the post just over five years ago.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.
