Brocker.Org: There’s just one area where Deutsche Bank has been hiring like crazy

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Deutsche
Bank Chief Executive Cryan addresses a news conference in
Frankfurt

Thomson
Reuters


LONDON – Deutsche Bank revealed it has hired around 370
compliance and anti-financial crime staff in the past 12 months,
despite reducing overall headcount by more than 3,000 in the same
period.

The bank said that revenue in the first quarter of 2017 dropped
9% to €7.3 billion (£6.8 billion) year-on-year but that
cost-cutting measures had helped boost profit, in its results
statement.

CEO John Cryan said: “I am pleased with the start we have made to
2017. Client engagement is strong, asset flows are returning
across the bank and activity is picking up.”

“Our cost-cutting efforts are starting to pay off, while we have
reduced complexity significantly. We have laid firm foundations
upon which Deutsche Bank can once again deliver good results,”
Cryan said.

Non-interest costs were down 12% to €6.3 billion. Net income
jumped more than 140% to €575 million despite a €239 million
hit to the bank’s markets business from “credit, debit and
funding valuation adjustments.”

Germany’s biggest lender has struggled to put legacy legal issues
behind it in a year of fines and investigations, and has reacted
by hiring large numbers of compliance staff.

Earlier this
year
 Deutsche
Bank


agreed to pay US and UK regulators $628 million

to
settle claims it failed to halt so-called “mirror trades”
to launder as much as $10 billion out of Russia.

Meanwhile, shares plummeted close to 30-year lows in
September after reports from the Wall Street Journal that the US
Department of Justice was looking to
impose a $14 billion fine for mortgage-backed security misselling
in the run-up to the financial crisis
.

The fine would have been more than the Deutsche Bank’s market
capitalisation, sparking concerns from clients and investors
alike about the bank’s financial stability. The DOJ settlement
was
eventually finalised at $7.2 billion.

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