Deutsche Bank under fire from investors over Postbank problems

deutsche bank under fire from investors over postbank problems

FILE PHOTO: Christian Sewing, Chief Executive Officer of Deutsche Bank, speaks at Banking Day, a gathering of bankers hosted by Germany's Banks' Association, in Berlin, Germany, April 23, 2024. REUTERS/Liesa Johannssen/File Photo

By Tom Sims

FRANKFURT (Reuters) - Big investors in Deutsche Bank vented their frustration at Germany's top lender on Thursday, describing problems at its Postbank business as a trust-damaging embarrassment.

The complaints at Deutsche's annual general meeting follow the bank's disclosure that a long-running lawsuit claiming that it underpaid for its purchase of Postbank could cost up to 1.3 billion euros ($1.4 billion).

Andreas Thomae of Deka Investment addressed Deutsche Bank CEO Christian Sewing directly, saying: "This news hit us like a thunderbolt. It has once again destroyed trust, which Deutsche Bank cannot afford."

Though Deutsche recently presented better than expected earnings, it has struggled for years to integrate Postbank fully. Soon after saying it had completed the technology integration, glitches locked customers out of their accounts for weeks.

"The problems with Postbank's IT migration are an embarrassment. A bank should not leave its customers in the lurch like Postbank did," said Alexandra Annecke, fund manager with Union Investment.

She said the matter raised questions about whether Deutsche Bank would be able to handle merger and acquisition opportunities that could arise.

CEO Sewing told shareholders the bank was sorry for the glitches and that Deutsche had fallen short of expectations.

The provisions will have a negative impact on results but does not change the company's strategy, he added.

($1 = 0.9200 euros)

(Reporting by Tom Sims; Editing by David Goodman)

OTHER NEWS

3 hrs ago

Almost half of Ghanaian youth are into alcohol consumption – UNICEF Report

3 hrs ago

Ask A Doctor: Why Does Poison Ivy Itch At Night?

3 hrs ago

Linux VPS for Beginners: 3 Mistakes to Avoid and How to Get Started Right

3 hrs ago

EPL: I might not coach again after leaving Liverpool – Klopp

3 hrs ago

Samsung Electronics picks veteran executive to tackle 'chip crisis' amid AI boom

3 hrs ago

Ronaldo meets Neymar at Fury-Usyk boxing fight

3 hrs ago

What Is A Plug-In Hybrid And How Exactly Does It Work?

4 hrs ago

Temu moves closer to Brazil debut with approval for tax benefit

4 hrs ago

Mexico’s presidential hopefuls accuse each other’s parties of cartel ties

4 hrs ago

New Caledonia: Australia, NZ send planes to rescue stranded tourists

4 hrs ago

General Motors' Plug-In Hybrids Are Coming Back To The U.S. In 2027

4 hrs ago

Italian tennis beauty accused of stealing, skipping rent

4 hrs ago

Children are more likely to be hospitalised for asthma during heatwave, study finds

4 hrs ago

Serie A: Osimhen yet to resume training at Napoli

4 hrs ago

Australia's Telstra to axe up to 2,800 jobs by year-end to cut costs

4 hrs ago

Star shares plunge as investors doubt validity of proposed takeover by Hard Rock

4 hrs ago

Sick of tourists, Japan town blocks view of Mt Fuji

4 hrs ago

USA: SpaceX Falcon 9 Sets New Reusability Record with 21st Launch

5 hrs ago

JPMorgan CEO Jamie Dimon says succession plan at Wall Street’s largest bank is ‘well on the way’

5 hrs ago

Dollar steady; ether fuels crypto rally

5 hrs ago

How much are Mavericks Conference Finals tickets? Cheapest, most expensive seats vs. Timberwolves in Dallas American Airlines Center

5 hrs ago

How Often Do You Need to Get Costco Gas to Cover Your Membership Cost?

5 hrs ago

Earthquake hits Iran days after President Raisi’s death

5 hrs ago

Soccer-Liverpool confirm Slot as new manager to replace Klopp

5 hrs ago

China’s dual-listed companies’ shares show Hong Kong discount over yuan counterparts at 15-month lows

5 hrs ago

Electricity grids creak as AI demands soar

5 hrs ago

Parent company of Trump's Truth Social posts $328 mln loss

6 hrs ago

Why China’s top Covid expert is studying climate change to prepare for the next global pandemic

6 hrs ago

Australian striker Sam Kerr to miss Olympics

6 hrs ago

Truth Social owner sees wider loss in the first quarter

6 hrs ago

Healthcare workers begin five days of strike action

6 hrs ago

Is It Time to Buy the Dip in Shopify Stock?

6 hrs ago

2 Unexpected Advantages of CDs Over Savings Accounts

6 hrs ago

Is Tilray Brands Stock a Buy?

6 hrs ago

GM CEO Says Electric Car Issues Are 'Absolutely' In The Past

6 hrs ago

JPMorgan CEO is 'cautiously pessimistic' on economy, successors in focus

6 hrs ago

Mexico's headline inflation likely edged up in early May: Reuters poll

6 hrs ago

New York Knicks: Top 3 potential offseason acquisitions

6 hrs ago

Nuggets are fifth straight NBA champ to falter in quest to repeat but maintain high hopes for future

6 hrs ago

Preventing Heart Disease Through Your Gut

Kênh khám phá trải nghiệm của giới trẻ, thế giới du lịch