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Deutsche Bank plans to trim commodities business, cut 200 jobs

Germany-based lender Deutsche Bank is planning to reduce its commodities business footprint, due to increasing operational expenses and regulatory pressure.

According to the plan, Deutsche Bank will quit the dedicated trading desks for energy, agriculture, base metals and dry bulk.

The decision to scale back the commodities business, will affect nearly 200 employees across the globe, including New York, London, Houston and Hong Kong, The Wall Street Journal reported.

Deutsche Bank corporate banking & securities co-head Colin Fan said, "As part of Strategy 2015+, we are actively managing and reviewing our business portfolio.

"The decision to refocus our commodities business is based on our identification of more attractive ways to deploy our capital and balance sheet resources.

"This move responds to industry-wide regulatory change and will also reduce the complexity of our business."

Following the exit, the business will concentrate on Deutsche Bank’s core competencies of financial derivatives and precious metals.

In order to wind down these businesses, the bank has formed a special commodities group, while the financial derivatives and precious metals businesses will be combined into Deutsche Bank’s Fixed Income and Currencies platform.