Reuters reports that Deutsche Bank’s investment banking arm will bear more than half of the group’s planned cost cuts, its chief financial officer said on Wednesday, as he admitted that the lender would continue to lag peers in the second quarter.
“Of the $2.36bn planned cost reductions between 2017 and 2019, more than half is expected to come from the corporate and investment bank,” James von Moltke told a conference.
“Our lack of profitability is still holding us back,” he acknowledged, adding that while peers are expecting flat revenues in the second quarter, Deutsche Bank’s performance would likely be “a little worse” given the bank’s current transition.
In the meantime, Bloomberg News reports that Deutsche Bank's CEO Christian Sewing said he’s not planning an all-out retreat from investment banking as the bank cuts back its global ambitions.
“The corporate and investment bank will always be the core DNA of Deutsche Bank and will always have at least half of the revenues,” Sewing said at an appearance with German Finance Minister Olaf Scholz in Berlin on Wednesday. The bank’s planned restructuring, which began almost immediately after his appointment in April, “is not a reinvention of Deutsche Bank,” he said.