Deutsche Bank said on Friday it would cut back its investment bank and split off its Postbank retail business, as it revealed the outlines of a strategy overhaul.
The Financial Times reports that like other global banks, Deutsche has been hit by regulation and sluggish markets since the financial crisis, and the bank’s management has been looking for ways to improve returns.
In a brief statement late on Friday evening, the bank said: 'The Management Board of Deutsche Bank today decided upon the next phase of the Bank's strategy. This reaffirms the Bank’s commitment to remain a leading global bank based in Germany. The Bank will reduce leverage in Corporate Banking & Securities (CB&S); deconsolidate Postbank; invest in its transaction banking, asset and wealth management, and retail businesses; and continue to redesign its operating and governance models to achieve greater efficiency and a more robust control environment. Furthermore, it will increase its investments in digital banking and rationalize its geographic footprint.
The Supervisory Board today decided unanimously to support the proposal submitted by the Management Board'.