Deutsche Bank plans billions in savings despite declining profits

Deutsche Bank plans billions in savings despite declining profits

According to a report from www.finanzen.net, Deutsche Bank is planning further savings worth billions after a decline in profits. In total, around 3,500 jobs are to be cut by the end of next year. The bank primarily wants to cut positions in areas that do not have direct contact with customers and simplify and automate internal processes. Fund subsidiary DWS is also under pressure after being visited again by prosecutors over “greenwashing” incidents.

Despite a decline in profits last year, the institute is confident that it will continue to grow. Revenues rose by six percent and are expected to grow to around 32 billion euros by 2025. The bank also plans to increase the dividend to shareholders by 50 percent and return a total of 900 million euros. Pre-tax profits reached their highest level in 16 years in 2023.

However, analysts are divided on how to evaluate the business figures. While some speak of a mixed end to the year, others see great potential in the cost-cutting measures announced. Deutsche Bank boss Christian Sewing plans to save a further 1.6 billion euros, which is viewed positively by some analysts. Deutsche Bank shares rose by almost five percent following these announcements.

Deutsche Bank is therefore facing a difficult period in which it must reduce its costs in order to remain profitable. However, the job cuts and cost-cutting measures could help the bank achieve its ambitious growth targets in the long term. Nevertheless, it remains to be seen how investors and the market will react to the announced measures.