Deutsche Bank chief John Cryan has pledged to redouble restructuring efforts, warning that the bank faces tough times as it seeks to finalise talks with U.S. justice authorities over a multi billion dollar fine. Sonia Legg reports.
It towers above Frankfurt and for many a collapse is unthinkable. Deutsche Bank's results have helped allay those fears to some extent. Germany's biggest lender made an unexpected but relatively small profit of 278 million euros. It was thanks to a 14 per cent rebound in bond trading. But there's still no sign of settlement with U.S. justice authorities. (SOUNDBITE) (English) CRAIG ERLAM, SENIOR MARKETS ANALYST, OANDA, SAYING: "They are still in discussions with the DoJ to try and bring the fine down from $14 billion, down to something more reasonable around $5.6 billion which has now been set aside now in litigation fees. So there does seem to be some signs of progress here but I think people are still going to remain concerned." CEO John Cryan has vowed to redouble restructuring efforts. He also wrote to staff warning "the situation will stay difficult for a while." (SOUNDBITE) (English) CRAIG ERLAM, SENIOR MARKETS ANALYST, OANDA, SAYING: "This is a massively systemically important bank, not just in Germany but in the euro zone as a whole. Aside from the fact that the bank is probably too big to fail it really does re-ignite those concerns about the banking region in the euro area as a whole." The UK banking sector has a few worries too. But Barclays - which in recent years has had to fork out billions in fines for regulation breeches - has reported a forecast- beating bounce. Profits were £1.7 billion - like its U.S. rivals it benefitted from a bumper third quarter in investment banking. It's an early endorsement for CEO Jes Staley's restructuring plan brought in after Barclays was punished for the Libor scandal - among others. It's still got Brexit issues to face. But maybe Deutsche's chief can take comfort from the fact some banks hit hard by regulators can pull through.