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Deutsche Bank AG is making good progress with its restructuring as it approaches the halfway mark in a five-year plan and should be able to meet all strategy targets even though its financial results are still weak, according to analysts.
Germany's top lender has come under fire by some of its biggest investors who have criticized CEO John Cryan for not achieving enough with his revamp over the past two years as profitability remains low, despite the stronger capital position and reduced litigation risk, Handelsblatt reported Sept. 14.
At the beginning of March, Cryan announced several key changes in Deutsche Bank's restructuring plan including a [euro]8 billion capital raise, which the group completed successfully a month later. The capital boost and the [euro]7.2 billion settlement with the U.S. Department of Justice over misselling of mortgage-backed securities Deutsche Bank achieved at the end of 2016, had managed to calm investor concerns for a time. However, the poor results booked by the group over the first half of the year have made some large investors unhappy, Handelsblatt said.
"The restructuring itself is going in line with what the CEO pointed out in more recent meetings ... but profitability is still quite low and...