Deutsche Bank shares fall as restructuring begins

Shares of Deutsche Bank were down 1.1 per cent at 7.10 euros having initially risen in early trade.
Deutsche Bank (Photo | Reuters)
Deutsche Bank (Photo | Reuters)

BERLIN: Deutsche Bank shares fell on Monday as investors digested details of a huge restructuring of the German lender.

Shares were down 1.1 per cent at 7.10 euros having initially risen in early trade, reports Efe news.

The German bank said on Sunday that it expected to post a net loss of 2.8 billion euros ($3.14 billion) as a result of restructuring-related costs when it reports second-quarter results on July 24. It plans about 18,000 global job cuts, which represents about one out of five current full-time employees, by 2022.

In a call to reporters on Monday, Chief Executive Christian Sewing declined to give a regional breakdown of the planned cuts but said they wouldn't be concentrated on one region. Sewing said the investment bank would come out of the restructuring smaller but more stable.

The bank needs to focus on the business areas where it is most competitive, he said. In the past, "we simply spread ourselves too thin".

The lender, whose share price has been near a record low for months, will focus on serving European companies and retail-banking customers, including wealthy clients.

It is aiming to strengthen businesses like asset management, currency trading, corporate-cash management and trade finance that support its narrower focus.

The bank also said on Sunday it would exit its global-equities sales-and-trading business completely but will continue offering some services, such as share underwriting, to clients.

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