Active Stocks
Mon Apr 15 2024 15:59:36
  1. Tata Steel share price
  2. 160.90 -1.59%
  1. ITC share price
  2. 425.90 -0.98%
  1. State Bank Of India share price
  2. 757.75 -1.17%
  1. ICICI Bank share price
  2. 1,078.80 -2.30%
  1. NTPC share price
  2. 361.35 -0.08%
Business News/ Industry / Banking/  Job cut at Deutsche Bank: Germany's biggest lender to slash 3,500 jobs as ‘cost discipline remains a high priority’
BackBack

Job cut at Deutsche Bank: Germany's biggest lender to slash 3,500 jobs as ‘cost discipline remains a high priority’

Deutsche Bank to cut 3,500 jobs as part of cost-reduction initiative; shares rise by 5%

Deutsche Bank: Germany's biggest lender to slash 3,500 jobs as ‘cost discipline remains a high priority’ (AP Photo/Michael Probst, File) (AP Photo/Michael Probst, File)Premium
Deutsche Bank: Germany's biggest lender to slash 3,500 jobs as ‘cost discipline remains a high priority’ (AP Photo/Michael Probst, File) (AP Photo/Michael Probst, File)

Deutsche Bank is going to cut 3,500 jobs within the next two years. This move comes from Germany's largest financial institution amid a strategic cost-reduction initiative. As this news broke, the bank's share prices went up by nearly 5%.

The lender’s net earnings witnessed a decline of 16% at 4.2 billion euros ( 37,684 crore) in 2023. Christian Sewing, the Chief Executive Officer (CEO), acknowledged the need for cost management.

Also Read: Deutsche Bank’s Shaparia gets Asia role

"Cost discipline remains a high priority," AFP quoted the CEO as saying in a message to Deutsche staff while praising the company’s performance amid "an uncertain environment". The lender is pressing ahead with a 2.5-billion-euro ( 22,430-crore) efficiency push aimed at improving profitability. Sewing also noted a pre-tax profit of nearly 5.7 billion euros, a peak in 16 years.

Deutsche Bank's operational expenses in 2023 included those on restructuring and severance. It amounted to 566 million euros ( 5,078 crore). This financial manoeuvring is part of a savings and efficiency programme initiated in 2019.

Also Read: Deutsche Bank’s trading revenue to decline for third consecutive quarter

The bank saw a revenue surge of 6%, reaching 28.9 billion euros ( 2,59,298 crore). This uptick is largely attributed to the higher interest rates sanctioned by the European Central Bank.

The bank expects to spend nearly 400 million euros ( 3,588 crore) in 2024, CFO James von Moltke said in a press conference. The expenses would include restructuring costs and further severance packages, von Moltke added.

Also Read: RBI can spend $30 billion of forex reserves to defend rupee: Deutsche Bank

Plans for 2025

Deutsche Bank has laid out ambitious plans for 2025. Those include getting revenues of 32 billion euros ( 2,87,084 crore). It plans to maintain total operational costs at around 20 billion euros ( 1,79,428 crore). The bank also intends to propose dividends of 0.45 euros per share for 2023, marking a 50% increment from the previous year.

"Our ambition is to be able to pay a dividend of one euro per share for the financial year 2025," Sewing said.

(With AFP inputs)

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 01 Feb 2024, 06:10 PM IST
Next Story footLogo
Recommended For You
Banking Stocks
₹1,073.6-1.4%
₹1,518.9-1.58%
₹1,104.15-2.3%
₹134.75-1.41%
₹766.75-1.17%
Switch to the Mint app for fast and personalized news - Get App