Deutsche Bank has recorded a sharp drop in profits: 4.9 billion euros after-tax profit last year, further savings and 3,500 job cuts planned.

Deutsche Bank has recorded a sharp drop in profits: 4.9 billion euros after-tax profit last year, further savings and 3,500 job cuts planned.

According to a report by www.bild.de,

Deutsche Bank recorded a 14 percent decline in profits to 4.9 billion euros last year. This is due to the absence of a one-time tax credit that could be recorded the year before. The bank is now planning to cut 3,500 jobs in “areas remote from customers”, particularly in corporate infrastructure and IT. In addition, internal processes should be automated in order to achieve savings. Postbank, which is part of Deutsche Bank, had massive IT problems last year that led to additional costs and led to monitoring by financial regulator Bafin. Although the bank was not able to fix all the problems by the end of the year, Deutsche Bank recorded its highest pre-tax profit in 16 years, which was also reflected in a profit share of 0.45 euros per share for investors.

The planned savings and job cuts could lead to short-term uncertainty in financial markets and affect investor confidence. Automating internal processes could reduce costs and increase efficiency in the long term, which could have a positive impact on the bank's profitability. However, it should also be noted that job cuts and internal restructuring are often associated with increased switching costs. The bank board's decision to switch internal communication to the "Du" could be seen as a measure to improve the working environment and promote a modern corporate culture.