Deutsche Bank: No takeover aims in Germany

3rd February 2005, Comments 0 comments

3 February 2005, FRANKFURT - Deutsche Bank chief executive Josef Ackermann, reporting his company's preliminary figures for 2004, said on Thursday his bank has no takeover aims for any German bank, including the loss-ridden HypoVereinsbank. At a press conference, Ackermann did say that the German banking sector was in for further consolidation, something which is a "good path as regards the costs side" of the industry. But he dismissed any idea of a takeover of HypoVereinsbank, the second-largest financial

3 February 2005

FRANKFURT - Deutsche Bank chief executive Josef Ackermann, reporting his company's preliminary figures for 2004, said on Thursday his bank has no takeover aims for any German bank, including the loss-ridden HypoVereinsbank.

At a press conference, Ackermann did say that the German banking sector was in for further consolidation, something which is a "good path as regards the costs side" of the industry.

But he dismissed any idea of a takeover of HypoVereinsbank, the second-largest financial institute in Germany.

"Our rating would be greatly endangered and our market capitalisation would be massively lower," Ackermann said. Investors now want Deutsche Bank to grow on its own accord and not through acquisitions, he added.

The Swiss chief of Europe's third-largest bank came as Deutsche Bank reported that its net income in 2004 reached EUR 2.55 billion, up 87 percent from the year before and the highest in four years.

In issuing the figures for 2004, the bank also announced plans for further job cuts as part of Ackermann's campaign to drive down costs.

The bank said it would slash a net total of 5,200 jobs or around 8 per cent of the work force, in keeping with the aim to lower costs by some EUR 1.1 billion annually. While slashing payrolls by 6,400 jobs, the bank plans to add 1,200 jobs in low-wage countries.

In its 2004 report, Deutsche Bank said its pre-tax income was EUR 4.1 billion, up 50 percent. These come on revenues of EUR 21.9 billion, up from EUR 21.3 billion in 2003.

The bank said it would propose a dividend of EUR 1.70 per share, up from last year's EUR 1.50 payout.

Ackermann's goal is to boost pre-tax yield on equity of 25 percent in 2005, compared with last year's return of 17 percent. Even at 25 percent, the return would lag behind that of the bank's major competitors, analysts noted.

Prior to Thursday's job cut announcement, Deutsche Bank has slashed some 19,000 jobs at the company since mid-2002 in the bid to lower costs and improve profitability.

In the fourth quarter of 2004, Deutsche Bank achieved pre-tax income of EUR 418 million, after reorganisation costs of EUR 574 million. Net income was EUR 269 million in the final quarter.

The fourth-quarter figures were well down from the EUR 676 million pre-tax income and EUR 436 million net income in the final quarter of 2003.

In the press statement, Ackermann said that "our recommended dividend increase demonstrates our desire to see shareholders benefit from our profit growth. This also reflects our commitment to an attractive dividend policy and our confidence in continued profitable growth going forward".

DPA

Subject: German news 

0 Comments To This Article