Deutsche’s private bank fires over 100 senior bankers in cost-cutting drive
Deutsche Bank plans to eliminate over 100 senior positions in its private wealth and retail banking units. This cost-cutting move targets highly-paid global managing directors and directors. Claudio de Sanctis, head of Deutsche Bank’s private banking division, aims to reduce expenses and boost efficiency.
Restructuring Private Banking for Cost Efficiency
Deutsche Bank wants to lower its cost-to-income ratio from 80% in 2023 to 60%-65% by 2025. The bank has already cut 300 German branches, trimmed the front-office workforce, and reduced spending on consultants. By slashing high-cost positions, Deutsche Bank hopes to achieve sustainable profitability in private banking.
New Leadership Drives Profitability Goals
Deutsche Bank’s private banking division has faced years of criticism for lagging profits and high costs. Previously, the bank dismissed two private banking heads over unmet profitability goals. Now, de Sanctis is leading a major overhaul to meet cost targets and drive revenue growth. His approach has attracted investor optimism, with many hoping his changes will improve the division’s performance.
Investing for Growth in India’s Market
While making cuts in Europe, Deutsche Bank has invested €571 million into its Indian operations. The bank aims to expand in areas like sustainable finance and digital transformation. Alexander von zur Muehlen, the bank’s CEO for Asia Pacific and other regions, sees strong growth potential in India. He believes India stands well-positioned to benefit from global economic shifts and digital advancements.
Deutsche Bank’s India CEO, Kaushik Shaparia, sees this investment as a vote of confidence. The bank plans to strengthen its client support and adapt its services to meet India’s demands. By expanding in India, Deutsche Bank aims to balance restructuring efforts in Europe with growth in high-potential markets.
Deutsche Bank’s recent cuts and investments reflect a strategy focused on efficiency and selective expansion. By streamlining in Europe and investing in India, the bank hopes to build a more profitable future across regions.
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