Garth Ritchie, who leads Deutsche Bank’s trading business, told staff the firm is targeting a profitability target of more than 10% for the unit as Europe’s largest investment bank reorganizes in a bid to boost returns.
Bloomberg News reports that Ritchie, 47, told staff in a town hall meeting this month that he wants the division to be the 'most sustainably profitable global markets business' by boosting revenue and trimming costs, according to a note published on the bank’s intranet, which summarized his remarks.
The note didn’t provide a timeframe for the targets, which won’t be directly comparable with the unit’s disclosed performance until it starts to break out figures for the unit in April.
Since taking over last year, co-CEO John Cryan has been shrinking the securities unit, the bank’s biggest source of revenue, to focus on the most profitable businesses as stricter capital rules and costs for past misconduct eat into returns.
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