Deutsche Bank is continuing its efforts to cut costs and streamline its operations by eliminating over 100 senior positions within its private wealth and retail banking sectors. The move comes as part of the bank’s broader strategy to enhance efficiency and better meet its financial goals for the upcoming years.
The restructuring, which affects 111 senior roles, primarily targets high-ranking employees within the bank’s private banking division, including global managing directors and directors. This latest round of job cuts is intended to help Deutsche Bank reduce its cost-to-income ratio to between 60% and 65% by 2025, a significant decrease from the current ratio of about 77% in 2023.
As Deutsche Bank works to achieve these cost-cutting objectives, it is also focusing on driving revenue growth across all divisions. Despite accounting for 31% of the bank’s revenue, the private banking division has faced challenges in recent years, including underperformance and IT-related issues, preventing it from meeting its profitability goals. These issues contributed to the departure of two former heads of private banking due to their inability to meet financial targets.
However, there is optimism among investors following the appointment of Claudio de Sanctis as the head of private banking. De Sanctis has already undertaken significant changes, such as merging management layers, closing 300 branches in Germany, reducing front-office staff, and slashing external consultancy spending. In a move to support the division’s future growth, de Sanctis has also revealed plans to hire more wealth management professionals in the coming year.
In addition to internal restructuring, Deutsche Bank is focusing on expanding its operations in India, having invested €571 million into its Indian business. The focus will be on capitalizing on opportunities in sustainable finance and digital transformation, areas where India is expected to see significant growth.
Alexander von zur Muehlen, Deutsche Bank’s CEO for Asia Pacific, Europe, Middle East & Africa, emphasized that India is well-positioned to benefit from global shifts such as digitalization and supply chain changes. Meanwhile, Kaushik Shaparia, CEO of Deutsche Bank India, expressed confidence that the bank’s investment will strengthen its presence in the rapidly growing Indian market. With this investment, Deutsche Bank aims to further solidify its position in India and continue offering top-tier services to clients in the region.
