Deutsche Bank AG (NYSE:DB) Q2 2016 Earnings Conference Call - Preliminary Transcript
Jul 27, 2016 • 02:00 am ET
Good morning and welcome everyone this morning for our second quarter earnings call. I'm joined this morning here in [inuadible] by john cryin our chief executive officer. And Marcus Schenck our chief financial officer. They will take you through the annual's presentation, which we have posted and is available on our external website db.com. As has become our practice, and as we did last quarter, I asked for the sake of efficiency and fairness that questioners limit themselves to just two of their most important questions when they come onto the call, so that will give as many people a chance as possible to participate in the q&a session. I would also forewarn you that due to other scheduling obligations, we will need to end this call up no later than 930 cet this morning. And let me close with the normal health warning to pay particular attention to the cautionary statements regarding any forward looking comments that you will find at the end of the industrial presentation. With that out of the way. Let me hand it over to john
Thank you, john. Good morning, everyone.
The second quarter of 2016 was quite a ride. We've seen Europe placed once again at a crossroads, following the decision by the British people to take the country out of the European Union. Initial market turbulence has since been replaced by a degree of market confidence in the power of British pragmatism to make the best of unexpected events. Europe, however, remains challenged. Not in recent history of so many people been unemployed, yet the continent remains a major destination for economic migrants. policy reform has come to a standstill. elections in the two largest European economies loom and a critical referendum and entity. populist politics have not played such an important role since the 1930s. the Brexit vote, and the Republic Republican Party rhetoric in the USA, point to a popular desire for re nationalization of policymaking pressing for a reversal or at least allow in the march Globalization. Against this backdrop, global policymakers continue to press for further banking reform, with calls for even stricter capitalization of banks. Regardless of the impact on the real economy, especially in Europe. Monetary theorists persist with their negative interest rate policies, relying ever more on hope for rather than expectation of success. The outlook is there, therefore uncertain. And that's particularly true in the Eurozone, where the intersection of policy actions, political decisions, and market confidence will be critical in the coming months and quarters the European and particularly and potentially global economic growth at Deutsche Bank were undertaking as much restructuring as possible in 2016. Despite the burden of lost revenues and added expense in the year, not to do so with simply perpetuate our structural inefficiency and delay the achievement of our fundamental goal that return to sustainable profitability, will not deviate from taking tough decisions just to flatter results in the short term. We did this in the past, and it