German Deutsche Bank (ETR: DBK) continue to cut staff bonuses by 77 percent, in order to balance costs after facing a difficult 2016.
According to the bank’s annual report, total pay stood at €8.9 billion euros in 2016, down from 10.5 billion the year previously. The bank has made measures to cut its variable pay to €500 million (£433.1 million) for the year, a decreased from €2.4 billion.
Ultimately, Deutsche Bank reported a net loss of €1.4 billion ($1.5 billion) for 2016, following a €6.8 billion ($7.2 billion) loss a year previously.
In a note to investors, Chief Executive John Cryan wrote: “2016 was a very challenging year for us at Deutsche Bank,”
“It was also a year in which we demonstrated our resilience and changed much for the better, despite a tough environment. He added.
“We focused our business and significantly strengthened our core capital ratio. We continued to make Deutsche Bank safer and simpler.”
Deutsche Bank has been under mounting pressure to cut costs, after posting its second consecutive full-year loss. The bank has been consequently actively been attempting to restructure itself to mitigate huge losses relating to legal bills that have been imposed by European regulators since 2012.
Its involvement with the miss-selling of mortgage backed securities in the run-up to the 2009 financial crisis, led to the issue of a record $7.2 billion fine from U.S. authorities. In addition, at the beginning of 2017 the bank also received a £500 million fine by both US and UK regulators as a result of its involvement with a Russian money-laundering scheme.
In a bid to raise capital to help alleviate the bank, it recently announced recently that it would be issuing around €8 billion of share rights, alongside various other restructuring initiatives to free funds. The bank also confirmed in January that any senior individuals holding the titles of vice president, director or managing director with also not be receiving any supplementary bonuses. Mr Cryan has not accepted his two last bonuses, since his appointment as Co-Chief Executive officer of the bank since June 2015.
As of currently, shares in the Deutsche Bank are down 2.63 percent as of 14.42PM (GMT) on Monday afternoon.