FRANKFURT (Reuters) – Deutsche Bank investors on Wednesday questioned the sustainability of the lender’s growth plans and called for a shift of resources from the investment bank, even as they praised CEO Christian Sewing for stabilizing the bank.
The statements, to be made at Deutsche Bank’s annual general meeting, come after the bank booked 11 consecutive quarters of profit after years of losses, but also amid bank rescues on both sides of the Atlantic that have shaken confidence in the sector.
Andreas Thomae of the Deutsche Bank investor Deka said that the bank’s targets require a “strong tailwind” from the markets to achieve them, and rising interest rates have been “pure adrenaline” for the bank.
“But how sustainable are these increases?” he will ask management, according to an advanced text of his remarks.
Alexandra Annecke, a portfolio manager at Union Investment, another investor, said Deutsche Bank had made a “comeback like a Phoenix rising from the ashes” but that a lot of work remained.
The bank’s low valuation is a “warning signal”, she said, according to an advance text of her remarks.
She called on the bank to shift capital from its investment bank to other areas in the bank that yield higher returns.
“Deutsche Bank is one of the European banks most dependent on investment banking, a poorly predictable, opaque business that is driving down its stock valuation,” she said.
(Reporting by Tom Sims, Editing by Rachel More)
