Pressure is mounting to cut back the investment bank.
Bloomberg reports that the securities arm, which as recently as the third quarter of 2014 accounted for the largest share of Deutsche Bank’s earnings, is poised to generate the smallest profit of the bank’s four operating units in the fourth quarter, according to analysts’ estimates compiled by Bloomberg News.
'The investment bank is stagnating while the company’s other units are growing,' Guido Hoymann, a Bankhaus Metzler analyst who recommends investors sell the shares, said by phone from Frankfurt. 'Scaling back the investment bank is an option, but you have to ask how they’re going to replace that earnings power.'
Deutsche Bank has said it will refresh its plan for the company in the second quarter. It’s weighing options such as job cuts and the sale of assets, including part of its German consumer-lending business, a person with knowledge of the matter said this month.
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