Deutsche Bank CEO Signals More Cuts to Investment Bank
May 23 2019 - 7:29AM
Dow Jones News
By WSJ City
Deutsche Bank CEO Christian Sewing signalled the lender will
shrink its investment bank as it struggles to stabilise the
business and regain support from investors who have pushed its
shares to record lows. He called the decline in the bank's
share-price a personal motivator for him.
KEY FACTS:
Shares hit another record low of EUR6.35 in early trading in
Frankfurt.
Sewing said deeper investment-bank cuts are coming...
And the bank's management is prepared to make "tough
cutbacks".
He said the bank will focus on profitable and growing businesses
but didn't provide details.
He did focus heavily on the transaction bank, a historically
important unit for Deutsche Bank.
Executives have discussed breaking the transaction bank away
from the rest of the investment bank...
To highlight its stronger profit margins.The bank also "has big
plans" for DWS, its asset-management business.
Why This Matters
Chairman Paul Achleitner said the lender is on the right track
despite a year "fraught with setbacks," including new regulatory
investigations and share declines. Deutsche Bank now needs a "clear
focus" and must adjust its business divisions while remaining
global, with a strong presence in the US and Asia, he added.
A fuller story is available on WSJ.com
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(END) Dow Jones Newswires
May 23, 2019 08:14 ET (12:14 GMT)
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