'They need to do something radical '.
Bloomberg News reports that the bank needs to cut costs by as much as $2.2bn, or about 7%, and shrink its debt-trading operations to bolster returns, according to analysts at Macquarie Group and Nomura Holdings.
Co-CEOs Anshu Jain and Juergen Fitschen have sought to keep a full-fledged investment bank and consumer-lending unit since taking over in 2012, even as rising capital requirements hurt profitability. Almost three years on, that strategy looks increasingly outdated as returns lag targets and competitors such as Barclays make deeper cuts.
'They need to do something radical because their strategy doesn’t seem to have convinced regulators or investors', said Dirk Becker, an analyst at Kepler Cheuvreux in Frankfurt who recommends investors buy Deutsche Bank’s shares.
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