Deutsche Bank to undergo major restructuring
New Delhi/Frankfurt, July 08(HS): Deutsche Bank, a German Bank operating across 58 countries of the world with 15th rank in asset valuation is planning major changes in business operations. This plan is under process due to the fact of failure of keeping pace with the rivals such as Goldman Sachs, accepted by the bank.
Under this restructuring plan, it will reduce the workforce by one fifth(of present 91500) to 74000 employees by 2022. The bank will scale down its global equity business and reduce some fixed income operations across continents to achieve cost to income ratio of 70 pc. For this, it will also set up bad bank to trim down its assets worth 74 billion euros.This overhaul is estimated to approximately cost 7.4 billion euros.
Following stepping down of Garth Ritchie as head of the bank and appointment of Christian Sewing as Chief Executive Officer, the new CEO has taken charge and described this restructuring as restart to focus on stable revenues with fundamental changes in the bank. He has also brought some new faces in management.
It is noteworthy that the revenues of this investment bank had declined for the fourth consecutive year approximately 30 pc from that of the year 2015. The bank has been struggling with revenues after financial crisis across world.
