The step marks a significant overhaul of its investment banking business and comes midst its net income of 120 million euros falling way behind analysts’ estimate of 379 million.
Following a 79% drop in net profits during the first quarter, on Thursday, Deutsche Bank in a step that marks a significant overhaul of its troubled investment banking business, Germany’s largest bank announced cuts to its bond and equities trading.
The bulk of the cuts are focused in Asia and the United States and will result in scaling-back of its business with hedge funds and job losses.
These cuts are aligned with the bank’s strategic decision to return to its core business and become a more corporate-led bank.
“Deutsche Bank is deeply rooted in Europe – here we want to provide our clients access to global financing and treasury solutions,” said Christian Sewing Deutsche’s Chief Executive Officer. “This is what we will focus on more decisively going forward.”
He went on to add, the reduction in headcount is “painful but regrettably unavoidable to ensure our bank’s competitiveness in the long run”.