No Matter 18,000 Lost Jobs, Germany OK With Deutsche Bank Cull

Deutsche Bank to cut 18,000 jobs, exit equities sales by 2022

DEUTSCHE Bank AG will exit its equities business and post a net loss of 2.8 billion euros (S$4.3 billion) in the second quarter as chief executive officer Christian Sewing seeks to boost profitability and shrink the German lender's once-mighty investment banking unit.

Deutsche has also suffered from a string of scandals caused by lax controls during the boom years and has come under scrutiny over its business dealings with Donald Trump.

The job cuts would reduce the workforce to 74,000.

Deutsche Bank will slash 18,000 jobs over the next three years as part of a drastic overhaul to revive its fortunes.

The CEO had flagged the restructuring in May, promising shareholders "tough cutbacks" to the investment bank.

In a note to clients in Australia, Deutsche Bank said it would stop providing local research as well as some sales and trading services.

Deutsche Bank plans to cut off another 25% jobs within a month.

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Shares in Deutsche Bank, which has nearly 91,500 staff around the world, erased early gains and were down 4.1% at 1224 GMT after the bank's finance chief flagged "significant uncertainty" whether it would break even in 2020.

Several workers left offices holding envelopes with the bank's logo.

The bank will set up a new so-called "bad bank" to wind down unwanted assets, with a value of 74 billion euros ($83bn) of risk-weighted assets. A Hong Kong-based equities trader told Reuters that the mood inside his division was "pretty gloomy" as employees were being called to meetings.

One senior Deutsche banker, who still had his job, stressed the bank was not giving up on deals it was now working on, but questioned how well its slimmed down franchise could compete in future. "They give you this packet and you are out of the building", he said.

The banking giant also said in 2017 that it could axe up to 4,000 roles in the United Kingdom as a result of Brexit.

"We are creating a bank that will be more profitable, leaner, more innovative and more resilient", Sewing wrote in a note sent to staff on Sunday.

However, the fact that its share price was up around the €40 mark less than 10 years ago shows the problems that have beset the bank in the decade since the financial crisis.

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