Deutsche Bank will not pay its board members a bonus for 2015, the lender announced on Thursday (28 January), after posting a €6.8bn (£5.2bn, $7.4bn) full-year loss. The biggest bank in Germany said it wanted to "own" the loss and take full responsibility for it.
New Deutsche Bank chief executive John Cryan said in a press conference that the supervisory board made the decision not to pay out bonuses to the board. "In the context of the overall performance of the bank last year, which the board has to own... That is a decision I respect," he said.
According to a Reuters report, Deutsche Bank's staff is facing its "worst year ever" as the lender is set to slash bonuses. Employees will be informed about individual bonuses in March, but the collective payout budget in some divisions is expected to be cut by at least 25%.
The bank generated a full-year revenue of €33.5bn in 2015, in line with expectations and a 5% increase from 2014. In its final quarter, Deutsche Bank's revenue plummeted by 15% to €6.6bn.
In November 2015, Cryan said he questioned the high wages and bonuses paid to bankers. "I have no idea why I was offered a contract with a bonus in it because I promise you I will not work any harder or any less hard in any year," he said.
The lender's share price has fallen 4.6% since 21 January when it first announced it was facing a colossal net loss over 2015 due to regulatory charges. The settlement costs caused Deutsche Bank to report its first full-year loss since 2008.
The majority of penalty costs to be paid by the company are itinerary fines, to settle court cases. Taking in charges of around €2.1bn in the fourth quarter of 2015, the German bank was forced to update shareholders on its financial situation at the end of the year.
Deutsche Bank was obliged to put aside money for several one-off costs, including €900m in restructuring charges. The lender announced in October it is cutting 35,000 jobs as part of this expensive shake-up.
The job cuts are expected to save the bank about €3.8bn and include axing 9,000 full-time employees, 6,000 external consultants advising the bank and the previously reported 15,000 staff, after the disposal of its Postbank subsidiary.
"We know that periods of restructuring can be challenging," Cryan commented on the results. "However, I'm confident that by continuing to implement our strategy in a disciplined manner, we can and will transform Deutsche Bank into a stronger, more efficient and better run institution."