As part of its efforts to reduce costs, Deutsche Bank is planning to cut 800 senior staff members after reporting a nine percent rise in first-quarter profit on Thursday.
At a time when banks in the U.S. and Switzerland had to be rescued, Germany's largest bank managed to deliver robust earnings. However, the financial chaos caused widespread panic among investors and led customers to withdraw their deposits; the same instability persists to this day.
"We need to speed up further, and that's what we are doing," said Deutsche Bank Chief Executive Officer Christian Sewing referring to the job cuts.
According to officials at Deutsche Bank, the job cuts will primarily affect senior non-client-facing roles. The move is part of a broader effort by the bank to reduce expenses by an additional 500 million euros over the next few years. It is expected to help the bank achieve greater efficiency and cost-effectiveness. By making these cuts, the bank can streamline operations and focus resources on areas critical to its success.
Deutsche Bank's financial performance in the year's first quarter was notably boosted by increased income from higher interest rates. This rise compensated for a fall in revenues at the bank's investment arm, which struggled in the challenging global economic climate as it reported a 19% drop in investment banking revenue that was worse than expectations. By contrast, revenue at the corporate bank and retail divisions beat expectations.
Despite the difficult conditions, Deutsche Bank achieved a net profit attributable to shareholders of 1.158 billion euros ($1.28 billion), significantly better than analysts had anticipated. The impressive results represent the bank's 11th consecutive quarter of profit, an impressive milestone after years of losses.
CEO Christian Sewing, expressing his satisfaction, addressed the employees in a memo saying, “We have worked hard to achieve this stability."
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