Deutsche Bank AG unveiled a radical overhaul that will see the lender exit its equities business, post a 2.8 billion-euro ($3.1 billion) second-quarter loss and cut the workforce by a fifth to reverse a slide in profitability.
Chief Executive Officer Christian Sewing will shelve the dividend this year and next and take restructuring charges of 7.4 billion euros through 2022 to pay for an overhaul that shrinks the German lender’s once-mighty investment bank along with its global footprint and key fixed-income business.
“Today we have announced the most fundamental transformation of Deutsche Bank in decades,” Sewing said in a statement on Sunday. “We are tackling what is necessary to unleash our true potential.”
„After further stabilising our bank last year, we are now entering the next phase – and that means nothing less than a fundamental transformation of our bank. (…) I am very much aware that in rebuilding our bank, we are making deep cuts.”, said Christian Sewing, CEO of Deutsche Bank, in a message to the staff related to the future transformation of the bank.
„We intend to invest 13 billion euros in technology by 2022. In addition, we will have a Management Board member responsible for digitalisation, data and innovation.” And the goal is to reduce costs. „For many years, our fixed costs have been way too high, as is demonstrated by our cost-income ratio. We intend to reduce adjusted costs by about 6 billion euros to 17 billion euros by 2022.”
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
