Jefferson Graham, USA TODAY Published 3:36 p.m. ET July 7, 2019 | Updated 4:50 p.m. ET July 7, 2019CLOSECLOSE Deutsche bank sends $35 billion to the w
Bank Account Jefferson Graham, USA TODAY
Published 3:36 p.m. ET July 7, 2019 | Updated 4:50 p.m. ET July 7, 2019CLOSECLOSE
Deutsche bank sends $35 billion to the wrong place. Elizabeth Keatinge has more.
Buzz60Deutsche Bank AG unveiled what it called a “radical transformation” Sunday, a move aimed at restoring profitability.To get there, the bank will slash its workforce dramatically, to the tune of 18,000 jobs by 2022, following a 2.8 billion-euro ($3.1 billion) second-quarter loss.”We are tackling what is necessary to unleash our true potential: our business model, costs, capital and the management team,” Deutsche CEO Christian Sewing said.
“In refocusing the bank around our clients, we are returning to our roots and to what once made us one of the leading banks in the world.”Deutsche Bank announces radical transformation: New strategy aims to improve sustainable profitability by focusing the business on its core strengthshttps://t.co/htH6r9R97rpic.twitter.com/ulC7KNqC2g— Deutsche Bank (@DeutscheBank) July 7, 2019Deutsche’s investment bank, which according to Bloomberg accounts for nearly half of the company’s revenue, will be split in two.The Frankfurt-headquartered bank said it would cut roughly a quarter of its total annual costs, from 22.8 billion euros ($25.6 billion) last year to 17 billion euros. It also plans to slim the division focused on fixed-income investments.The aim is to focus on areas where the bank is among market leaders, and on businesses with steadier earnings such as serving corporate customers.For years, Deutsche Bank has struggled with regulatory penalties and fines, weak profits, high costs and a falling share price. Sewing took over last year and promised faster restructuring after predecessor John Cryan was perceived to have moved too slowly.Key points of the new Deutsche Bank strategy pic.twitter.com/89BF4e2Cq1— Deutsche Bank (@DeutscheBank) July 7, 2019The restructuring follows the failure in April of merger talks with German rival Commerzbank. Deutsche Bank said the combination would not make business sense, but that left open the question of what strategy the bank could pursue to make its business leaner and more profitable.As part of the restructuring the bank said it would create a separate unit to dispose of billions in investments that are less profitable or no longer fit its strategy. The bank said it did not expect to have to raise additional capital from shareholders.Contributing: Associated PressRead or Share this story: https://www.usatoday.com/story/money/2019/07/07/deutsche-bank-announces-radical-restructure-increase-profits/1668833001/