Deutsche Bank: Attempts for a Fundamental Makeover

16 Jul 2019

Deutsche is planning to scrap its global equities business and scale back its investment banking operations in an attempt to turn around the struggling German flagship lender. 

The bank will also cut its fixed income operations, especially its rates business, and create a new unit to wind-down unwanted assets. 

The restructuring changes are expected to have an adverse effect on the second quarter results with an expected loss of Euro 2.8 billion. 

Chief Executive Officer, Christian Sewing, flagged an extensive restructuring in May when he promised shareholders “tough cutbacks” to the investment bank. 

Further, media reports had suggested that Deutsche Bank, could cut as many as 20,000 jobs, which means more than one in five of its 91,500 employees.