Deutsche Bank announces EUR3.5bn in cost cuts, sale of Postbank
Deutsche Bank will close up to 200 high street branches by 2017, and reduce its presence in some countries cutting costs by €3.5bn.
Deutsche Bank AG
€16.53
19:59 26/04/24
DJ EURO STOXX 50
4,939.01
23:59 25/04/24
Xetra DAX
18,161.01
20:00 26/04/24
In a statement on Monday, the bank said it will shift its global focus, reducing the number of countries it operates in by 10-15% and invest in markets most relevant to multinational clients.
Deustche Bank will also sell its retail business Postbank via a stock-market listing by 2016 and reduce its investment banking operations. At the same time it will invest more in equities and wealth management.
Additionally, the Corporate Banking & Securities (CB&S) division of the bank plans a leverage reduction of €200bn and an investment of €50-70bn in its relationship driven businesses. It will invest up to €1bn in digital technologies across the bank and €1.5bn to accelerate growth in GTB and Deutsche AWM.
With these actions it hopes to increase its leverage ratio to at least 5%, offer an after tax return on equity at more than 10% and give a payout ratio to shareholders of 50% or more.
Deutsche Bank's net income in the first quarter fell by 50% to €559m, due to the bank being fined €2.3bn for manipulating inter-bank lending rates.