[Germany] Deutsche Bank to cut 3,500 jobs despite €4.2 billion profit in 2023

On February 1, Deutsche Bank announced that it would cut 3,500 jobs as part of efforts to slash costs by €2.5 billion by next year and boost profits, WOKV reports.

The move comes despite the bank - Germany's largest lender - benefiting from higher global interest rates.

Deutsche Bank reportedly said it would seek to streamline its marketing network and computer systems and software in its bid to cut costs. It said the reduction in the number of positions would primarily be for roles that don't directly deal with customers.

The announcement came in the wake of the release of annual profit figures revealing that the bank made €4.2 billion in 2023, a 16 per cent decline compared with 2022. However, it was the fourth straight year in which the bank made a profit.

Together with its peers, Deutsche Bank has benefited from the global interest rate rise, which can increase the profit margin between what the bank pays out in interest and what it can earn.

Christian Sewing - Deutsche Bank CEO - said the results “demonstrated impressive resilience in a difficult environment, expanded our business and shown everyone our bank is sustainably profitable.”

Revenue reportedly grew 6.8 per cent, to €28.9 billion. The bank announced it was raising its dividend to 45 euro cents per share from 30 cents per share and would give more cash to shareholders by buying back €675 million in shares by the end of June.

Source: WOKV

(Link and quote via original reporting)

On February 1, Deutsche Bank announced that it would cut 3,500 jobs as part of efforts to slash costs by €2.5 billion by next year and boost profits, WOKV reports.

The move comes despite the bank - Germany's largest lender - benefiting from higher global interest rates.

Deutsche Bank reportedly said it would seek to streamline its marketing network and computer systems and software in its bid to cut costs. It said the reduction in the number of positions would primarily be for roles that don't directly deal with customers.

The announcement came in the wake of the release of annual profit figures revealing that the bank made €4.2 billion in 2023, a 16 per cent decline compared with 2022. However, it was the fourth straight year in which the bank made a profit.

Together with its peers, Deutsche Bank has benefited from the global interest rate rise, which can increase the profit margin between what the bank pays out in interest and what it can earn.

Christian Sewing - Deutsche Bank CEO - said the results “demonstrated impressive resilience in a difficult environment, expanded our business and shown everyone our bank is sustainably profitable.”

Revenue reportedly grew 6.8 per cent, to €28.9 billion. The bank announced it was raising its dividend to 45 euro cents per share from 30 cents per share and would give more cash to shareholders by buying back €675 million in shares by the end of June.

Source: WOKV

(Link and quote via original reporting)