Deutsche Bank is aiming to cut up to a quarter of its riskiest assets in the nex...
FRANKFURT - Deutsche Bank is aiming to cut up to a quarter of its riskiest assets in the next few years, people familiar with the matter said, shedding more light on how the German lender is trying to overhaul its business and revive profitability.
The bank’s shares, which have hit record lows in June, have perked up on expectations that a major overhaul is underway. Deutsche’s biggest business by revenues is its investment bank, which holds swathes of high-risk assets such as complex derivatives. Cutting back on risky assets would in theory allow Deutsche to hold less capital and use this money for other purposes to try to boost profit.
The bank held 347 billion euros in such assets at the end of the first quarter, according to Deutsche’s quarterly results. A 25% reduction would bring assets to about 260 billion euros. One of the big open questions is how many jobs Deutsche will cut. The bank has already pledged to reduce headcount to under 90,000, from the current 91,463.
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