Deutsche Bank backers question profit sustainability

Investors in Deutsche Bank expressed concerns about the sustainability of the bank’s growth plans and called for a reallocation of resources away from the investment bank during the annual general meeting. While praising CEO Christian Sewing for stabilising the bank and achieving 11 consecutive quarters of profit after years of losses, investors highlighted the need for market support to achieve the bank’s targets and questioned the long-term sustainability of increasing interest rates.

Investor Andreas Thomae of Deka emphasised that Deutsche Bank’s targets rely on favourable market conditions and questioned the durability of the recent interest rate increases. Alexandra Annecke, a portfolio manager at Union Investment, commended the bank’s comeback but raised concerns about its low valuation, urging a shift of capital from the investment bank to areas that generate higher returns.

CEO Christian Sewing defended the bank’s profitability and its strategy, stating that they have the right approach to achieve their goals. The meeting marked the first annual general meeting under the chairmanship of Alexander Wynaendts, a former insurance executive. The proceedings were moderated by Norbert Winkeljohann, a board deputy and native German speaker, who faced opposition from some investors due to his simultaneous role as chairman of Bayer.

Deutsche Bank’s annual general meeting provided a platform for investors to voice their apprehensions about the bank’s growth plans and call for a realignment of resources. Despite acknowledging the bank’s improved performance under CEO Christian Sewing, concerns were raised regarding the bank’s reliance on favourable market conditions and the need to address its low valuation. The meeting also saw discussions about the board composition and the potential conflict of interest faced by the deputy chairman. Sewing expressed confidence in the bank’s strategy and its ability to achieve its objectives.

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