There is no peace for Deutsche Bank desperately looking for a way out of the crisis which, however, still seems difficult to take today.
After the announcement of important changes at the top, which led to theexit of CEO John Cryan and the appointment of Christian Sewing at the helm of the German banking giant, the institute lets it be known that it intends to implement one thorough review of its activities of corporate and investment banking (Cib) and that it intends to implement other efficiency measures to contain costs and remain below the threshold of 23 billion euro in the current year. Changes that inevitably will also pass through major staff cuts.
On the other hand, the leading German bank is not hiding and clearly states that it expects "a significant reduction in the workforce" for the rest of the year.
In detail, according to what can be read in a note, the downsizing will mainly affect US rates and Asia assets, but also global equities assets "with the expectation of reducing its platform".
Measures that become even more urgent if they are observed first quarter accounts published by Deutsche Bank. The Frankfurt institute closed the first three months down with revenues of 7 billion euros (-5%), but above all with a profit of 120 million euros from 575 million in the previous year, a result that represents a drop of 79%. “We must act decisively and review our strategy. There is no time to waste as the current returns for our shareholders are not acceptable,” Chief Executive Officer Christian Sewing said in a statement.
The group also let it be known that it intends “focus its activities and resources on its European customers and multinationals and on the products that are most important to them”. "In reallocating resources and improving capital and balance sheet efficiency, the bank will scale back other areas where the board believes Deutsche Bank no longer has a sustainable competitive advantage in the changed market environment," the German institute wrote, adding which regarding corporate finance will focus on offering “global expertise to companies, financial institutions and financial sponsors whose activities are closely aligned with the strengths of the German and European economies”.
on the Frankfurt Stock Exchange Deutsche Bank stock it is currently up 0,4% after opening 1% lower.
