'Yet to see signs of any cost action'
Bloomberg News reports that Deutsche Bank may update its cost-reduction targets when it publishes first-quarter earnings this month to “rebuild trust” with investors amid the “weak revenue environment,” JPMorgan analysts wrote in a report from London on Monday. The bank retained its “overweight” stance on the shares because quarterly results may show progress on cuts.
Deutsche Bank co-Chief Executive Officer John Cryan, who took over from Anshu Jain in July, is cutting 9,000 jobs and eliminating outdated and overlapping information technology systems to lift returns. His overhaul has been complicated by a downturn in global markets as lower energy prices and concerns over cooling growth weigh on revenue at investment banks.
“We think we have given new management too much credit based on cost discipline rhetoric, but are yet to see signs of any cost action,” JPMorgan’s Kian Abouhossein and Amit Ranjan said in the report.
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