Deutsche Bank is expected to dramatically restructure its business which will see the exit of 18,000 jobs and its global equity business.
«Today we have announced the most fundamental transformation of Deutsche Bank in decades,» said Deutsche Bank CEO Christian Sewing said in a statement on Sunday, following the reporting of $3.1 billion Q2 loss. «We are tackling what is necessary to unleash our true potential.»
In addition, the bank announced it would shelf dividend payouts for 2019 and 2020 while creating a fourth division known as the corporate bank. This unit, headed by Stefan Hoops, will be created by removing the transaction bank from the investment bank arm and combining it with Deutsche Bank’s corporate clients unit.
Shifting Focus
The move is expected to shift focus away from asset managers and hedge funds to corporate clients by delivering cash management, trade finance, and hedging solutions.
«We remain committed to our global network and will help companies to grow and provide private and institutional clients with the best solutions and advice for their respective needs – in Germany, Europe and around the globe,» Sewing added on Sunday.
Asia to Be Halved Initially
The bank is planning to shut down the majority of the Asia Pacific equities business, according to news wire «Bloomberg», including cash equities, equity research, and equity IPO underwriting. The report added that the bank may keep its margin lending business.
Meanwhile, as many as half of the Asia equities staff to leave initially and with the remaining to follow later this year, pending decisions by the supervisory board meeting. The APAC region currently houses 20,000 employees making up about one-fifth of its total workforce.
