Deutsche Bank cuts 800 positions after a successful first quarter. After a better-than-expected first-quarter profit, Deutsche Bank (DBKGn.DE) will slash 800 positions.
Germany’s largest bank earned well throughout the US and Swiss bank bailouts. Nevertheless, investors panicked, customers withdrew deposits, and the upheaval continued.
Deutsche’s latest personnel reduction reverses recent hiring.
“We need to further speed up and that’s what we are doing,” Deutsche Bank CEO Christian Sewing told reporters about the layoffs.
Executives said the move was one of many to slash expenses by 500 million euros over the next three years and will focus on senior non-client-facing functions across the bank. Deutsche’s first-quarter personnel was 86,712.
Deutsche’s quarterly benefit from higher interest rates offset its investment bank’s revenue decline.
After years of deficits, the bank’s 11th straight quarter of profit was its longest.
First-quarter shareholder profit was 1.158 billion euros ($1.28 billion). That was up from 1.060 billion euros a year earlier and higher than experts’ predictions of 977 million euros.
“We have worked hard to achieve this stability,” Sewing told staff.
Deutsche Bank sought to regain profitability in 2019 by shifting away from its risky investment bank and toward more stable operations serving enterprises and retail consumers.
In the first quarter, investment bank revenue plummeted 19% to 2.7 billion euros, missing estimates of 2.8 billion euros.
The investment bank’s origination and advisory division fell 31%, following JPMorgan and Goldman Sachs.
Fixed-income and currency trading, the bank’s largest segment, lost 17% to 2.4 billion euros. Revenue forecasts were 2.5 billion euros.
The corporate and retail banks’ 35% and 10% revenue increases offset the investment bank’s decline.
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