JAKARTA (TheInsiderStories) – Deutsche Bank AG, a Germany lender, has officially get approval from Indonesia Stock Exchange (IDX) to close its local unit operation, PT Deutsche Sekuritas Indonesia. The decision took effect since April 17.
“The revocation is based on the request of Deutsche Sekuritas and the stock exchange regulation concerning suspension and revocation of membership approval,” wrote the IDX on Tuesday (04/21).
Earlier, the group decided to stop the stock trading business and cut 18,000 of its employees by 2022, after the bank continued to suffer chronic losses and decided to streamline its business and only focus on on serving companies in Europe and retail customers.
The securities house received permit as member of the IDX on Dec. 9, 2004 with DB trading code and registration number 239. Last year, the company submitted a resignation plan as a member of stock exchange.
Deutsche Bank’ CEO, Christian Sewing, had overseen the closure of swaths of its loss making investment bank, was ahead of schedule on a EUR280 billion (US$304.35 billion) balance sheet clean-up, and had stemmed a stream of misconduct fines. “Our strategy is working,” he said in late January as quoted by Financial Times, promising the bank would go “on the offensive” in 2020.
The Germany’ largest lender is now worth about EUR12 billion and has racked up EUR14 billion in losses over the past five years. With a deep recession increasingly likely, a growing source of concern is Deutsche Bank’ loan book, which stands at EUR434 billion and has increased 7 percent in a year.
The lender has already closed 40 percent of its 500 branches in Germany and is evaluating a government scheme that allows companies to temporarily send home staff while the state covers part of their wages. Deutsche and rival Commerzbank held unsuccessful talks to combine last spring.
Sewing, who has been leading Deutsche Bank since last year, had announced a massive overhaul plan in July, 2019, under which the bank would be returning EUR5 billion of capital to shareholders starting in 2022. The policies its expecting would be maintaining a capital ratio of 12.5 percent and also reduce costs around EUR6 billion.
Written by Staff Editor, Email: email@example.com