While Deutsche Bank has overhauled its strategy several times recently, its CFO stated that the next restructuring is likely to be the final one to be held. He was certain of this round working out and that it could return to focusing on its core business. Deutsche Bank will soon slash jobs, cut back investment banking, and cease trading operations and equities sales.
It is expecting18000 jobs are to be eliminated by 2022. Costs will be slashed by $12 billion. He stated that while painful, job cuts were necessary and these plans had been considered.
Various segments of the organization would be affected, stated von Moltke, the CFO. Moltke stated that the BOD had been working for setting goals that would be achievable, ensuring profitability and that no more job cuts are necessary.
The last year has seen Deutsche set short-term goals, to build from these successes. The BOD is determined to have this as the last job cut round. The decision to cut back its investment banking division comes after Garth Ritchie, its IB chief decided to quit as a result of mutual agreement between him and the company.
Deutsche is predicting its restructuring plans to cost around €7.4 billion by 2022. Q2 2019 is expected to bring about a loss of around €2.8 bn. Shares have grown 16% during the last month in response to the encouraging news. However, it is worth noting that its current price of €7 per share is a paltry sum, compared to the per share value of €112 it used to command prior to the crisis.
This falling share price reflects the current state of the bank, which has been plagued by money laundering scandals and its Commerzbank merger talks collapsing.
The latter would have provided a breather for Deutsche’s IB wing. When asked if investors could buy its shares safely, von Moltke stated that the bank was set to head north, towards stability and that this would bring back investors into its fold.