Was Deutsche Bank's 11 Percent Bonus Pool Cut a Surprise?

The transcript discusses the unexpected smaller reduction in the bonus pool of an investment bank, emphasizing the need to retain talented staff despite an 11% cut. It highlights the performance of various business lines, with some areas like equity trading faring better. The forecast for the year presents challenges, particularly for John Kramer, due to high costs and an unsupportive revenue environment. Concerns about the loan book quality and exposure to oil and gas are also addressed, with current figures aligning with other banks.

What was the initial expectation for the reduction in the investment bank's bonus pool?

• A 10% reduction

• A 50% reduction

• A 30% reduction

• A 20% reduction

Why is the bank trying to retain its talented staff despite the bonus pool cut?

• To increase market share

• To comply with regulations

• To reduce operational costs

• To maintain competitive advantage

Which business line experienced the heaviest decline in revenues?

• Advisory services

• Equity trading

• Fixed income

• Equity capital markets

What is one of the major challenges John Kramer faces in overhauling the business?

• Increasing market competition

• Regulatory hurdles

• High severance costs

• Lack of skilled workforce

What was a significant concern regarding the bank's exposure?

• Technology

• Healthcare

• Real estate

• Oil and gas