The Financial Times reports that 'thousands of jobs at Deutsche Bank are at risk' as the German banking giant gets to grips with the reorganisation of its equities and asset management businesses.
A JP Morgan research note issued in October also estimated that Deutsche would have to axe up to 1,900 jobs in its wholesale and wealth units in order to capture the cost savings the bank seeks. And Deutsche's third quarter results will have done nothing to dampen the gloom that is fast descending on the bank's under pressure businesses.
Now, on the face of it, Deutsche's Q3 performance wasn't that bad - an 18% increase in profits to $866.3m. But a closer look reveals a slightly different picture. The revenues in this period include almost $500m of gains from an exceptional one-off tax benefit. And, even then, the bank's revenue fell to its lowest since the first quarter of 2003.
Pre-tax profits over at the investment bank fell 20% to $706m. Although fixed income continued to put in a robust performance, equity sales and trading revenues were down 46% to $509m. Over in the asset management and wealth division profits slumped 57% to $127m.
Although Deutsche is committed to getting its act together, that doesn't necessarily mean that the bank will rush to judgement and wield the axe quickly. It could be several months yet before staff learn of their fate.