World Economy

Deutsche Bank Plans $4b Revamp

Deutsche Bank Plans $4b RevampDeutsche Bank Plans $4b Revamp

Deutsche Bank will cut some €200b ($217b) in investment bank assets and exit a tenth of the countries it operates in, as part of a restructuring program that will cost €3.7b ($4b) to implement, RTE reported. The group said it aimed for €3.5 billion in cost savings by exiting low-profit businesses or regions, closing branches, selling Postbank and by increasing automation. In the group’s profit engine – the investment bank – it aimed to cut back its operations in commodities, uncleared credit default swaps, repurchase agreements and long-dated uncleared derivatives. Deutsche Bank is selling Postbank and trimming the wings of its investment bank in a broad restructuring it launched after the group fell short of its profit targets and the performance of rivals. The bank also aims for a dividend payout ratio of 50%. The company would invest further in India and China but reduce the number of foreign offices it runs to about 63 from the current 70.