German banking giant Deutsche Bank (DB) announced Thursday its plans to significantly reshape its Equities Sales & Trading business, which will result in the reduction of about 25 percent jobs in this area.
With the implementation of its plans, the number of full-time equivalent positions is expected to fall to well below 90,000 from just over 97,000 currently. The associated personnel reductions are underway.
The company said its 2018 results will include planned restructuring charges of up to 800 million euros. The bank said it aims to deliver steady growth in return on capital over the coming years.
The company noted that in Cash Equities, it will concentrate on electronic solutions and its most significant clients globally. In Prime Finance, the bank will reduce leverage exposure by a quarter, equivalent to a reduction of approximately 50 billion euros.
These business reductions will contribute to a decrease in leverage exposure in the Corporate & Investment Bank of over 100 billion euros. This is approximately 10% of the 1.05 trillion euros of leverage exposure reported at the end of the first quarter of 2018. The majority of this reduction is expected to be achieved by the end of this year.
Together with its decision to right-size the expense base in the Corporate & Investment Bank, Deutsche Bank will accelerate the pace of cost reduction across the organisation. As said earlier, the bank in 2018 sees adjusted costs not to exceed 23 billion euros.
For 2019, the Management Board plans to reduce adjusted costs to 22 billion euros with no further significant disposals currently planned.
The company also reaffirmed its target of a post-tax return on tangible equity or RoTE of approximately ten percent in a normalised business environment.
The bank will seek to reach this goal from 2021 onwards.
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