Deutsche Bank to cut 18,000 jobs in 7.4 billion euro overhaul

Deutsche Bank plans to shut down most of its Asia equity businesses

The financial district with the headquarters of Germany's largest business bank, Deutsche Bank, is photographed on early evening in Frankfurt, Germany, January 29, 2019. On Friday, Deutsche Bank announced the resignation of investment head Garth Ritchie, and teased a plan to save Deutsche $19 billion by 2022.

Deutsche Bank is planning to shutter the majority of its equities business in the Asia-Pacific region as part of a restructuring to be announced as soon as Sunday, a person with knowledge of the matter said.

Deutsche Bank plans to cut 18,000 jobs in a sweeping, €7.4 billion overhaul created to turn around Germany's struggling flagship lender.

Beyond the expected cutbacks to equities, Deutsche said it would also axe some of its fixed income operations, an area traditionally regarded as one of the bank's strengths.

In private banking, Deutsche has said it plans to hire 300 new relationship and investment managers by 2021 as part of a plan to bulk up in the sector.

"This could be a real new beginning for Deutsche Bank", said Szukalski, who also sits on the bank's supervisory board. Asia has been one of the bright spots for equity issuance revenue for Deutsche Bank. After consultation with the bank's regulators, the bank now intends to operate with a minimum CET1 ratio of 12.5% going forward.

The bank confirmed its intention to get out of the share business entirely, firing some 20 percent of its global workforce, as well as making major but undisclosed changes to its investment branch, referring to the employee bloodbath as a "restart".

Most of the staff employed in that division are based in London, New York and Hong Kong.

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The reorganisation of the enterprise follows the failure of merger talks with rival Commerzbank in April.

Deutsche bank gave no geographic breakdown for the job cuts.

Including the charges related to the restructuring described above, Deutsche Bank expects to report a second quarter 2019 loss before income taxes of approximately Euro 500 million and a net loss of Euro 2.8 billion.

As one Barclays insider suggested the BBC: "Deutsche is where Barclays used to be 5 to 10 years in the past".

Shares in the bank are down nearly 25% in the past year and hit a record low in June.

But the bank - and its investment banking team in particular - struggled to find direction following the global financial crisis.

On top of the rank-and-file cuts, Deutsche is also rebuilding its board, sending away compliance chief Sylvie Matherat and two other executives.

Sewing called the package the "most fundamental transformation" of the bank in decades.

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