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Deutsche Bank to reduce EUR200bn in investment bank assets

Deutsche Bank has announced plans to reduce about €200bn in investment bank assets as the lender revamps its structure to increase profits.

DB

Further, the bank announced it will redeploy €50-70bn in relationship-driven businesses.

Deutsche Bank co-chief executive officers Jürgen Fitschen and Anshu Jain said: "Our strategy review process was thorough and rigorous.

"As a result of our strategy review, we are convinced that pursuing a focused client-centric business model is the right choice for us. This business model, which is unique to Deutsche Bank, will get us closer to our roots."

For the next five years, the lender aims to focus on delivering value and by 2020, it hopes to be better capitalized and less leveraged.

As part of its strategy review process, Deutsche Bank aims to build a focused investment bank and reshape its retail business and de-consolidate Postbank.

Further the bank plans to additionally invest €1bn over the next three to five years and deploy digital technology across the platform and invest to accelerate growth in Global Transaction Banking (GTB) and Deutsche Asset & Wealth Management (Deutsche AWM).

With the additional investment, the bank aims to capture new revenue opportunities through remote advisory channels and realize platform efficiencies through automated or digitised processes.

Deutsche Bank’s Corporate Banking & Securities (CB&S) business aims to de-emphasise lower-return business in addition to investing in growth in higher-return products.

The bank’s Private & Business Clients (PBC) unit aims to invest up to €500m in digital technology with further plans to cut down its branch network by up to 200 branches by the year 2017. By reducing the number of countries or local presences by 10-15%, the bank aims to refocus its global footprint through 2020.


Image: The Deutsche Bank Twin Towers, the headquarters of Deutsche Bank in Frankfurt. Photo: courtesy of Thomas Wolf