Europe’s biggest investment banks are telling investors that it will take years for their overhauls to bear fruit.
John Cryan, Deutsche Bank AG’s co-chief executive officer since July, said on Thursday the next two years will be tough as plans to shed workers and businesses and revamp technology hurt results. He echoed remarks by Tidjane Thiam, Credit Suisse Group AG’s new CEO, who laid out his reorganization plan last week. Rising charges for misconduct and restructuring forced Barclays Plc to cut its profitability target for 2016.
More than seven years after the financial crisis, Europe’s biggest securities firms are still shaking up their businesses to cope with stricter regulation and fines for misleading clients and manipulating markets. The three banks have yet to dispel investor doubts about their growth prospects in the face of increasing capital requirements and competition from U.S. rivals. Read more
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