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Deutsche Bank to slash 3,500 jobs



Deutsche Bank is going to cut 3,500 jobs within the next two years. This move comes from Germany’s largest financial institution amid a strategic cost-reduction initiative. As this news broke, the bank’s share prices went up by nearly 5%.

The lender’s net earnings witnessed a decline of 16% at 4.2 billion euros ( 37,684 crore) in 2023. Christian Sewing, the Chief Executive Officer (CEO), acknowledged the need for cost management.

“Cost discipline remains a high priority,” AFP quoted the CEO as saying in a message to Deutsche staff while praising the company’s performance amid “an uncertain environment”. The lender is pressing ahead with a 2.5-billion-euro ( 22,430-crore) efficiency push aimed at improving profitability. Sewing also noted a pre-tax profit of nearly 5.7 billion euros, a peak in 16 years.

Deutsche Bank’s operational expenses in 2023 included those on restructuring and severance. It amounted to 566 million euros ( 5,078 crore). This financial manoeuvring is part of a savings and efficiency programme initiated in 2019.

The bank saw a revenue surge of 6%, reaching 28.9 billion euros ( 2,59,298 crore). This uptick is largely attributed to the higher interest rates sanctioned by the European Central Bank.

The bank expects to spend nearly 400 million euros ( 3,588 crore) in 2024, CFO James von Moltke said in a press conference. The expenses would include restructuring costs and further severance packages, von Moltke added.

Plans for 2025

Deutsche Bank has laid out ambitious plans for 2025. Those include getting revenues of 32 billion euros ( 2,87,084 crore). It plans to maintain total operational costs at around 20 billion euros ( 1,79,428 crore). The bank also intends to propose dividends of 0.45 euros per share for 2023, marking a 50% increment from the previous year.

“Our ambition is to be able to pay a dividend of one euro per share for the financial year 2025,” Sewing said.

(With AFP inputs)

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Published: 01 Feb 2024, 06:10 PM IST

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