- Deutsche Bank reports a better-than-expected 9% rise in Q1 net profit, marking the 11th consecutive quarter of profit.
- The bank announces job cuts in non-client facing staff and a major revamp of its management board to ensure “sustainable profitability.”
Deutsche Bank, Germany’s largest bank, has reported a better-than-expected 9% rise in net profit for the first quarter of 2023. Despite a 19% drop in investment banking revenue, the bank’s corporate and retail divisions beat expectations, contributing to a net profit of €1.158bn ($1.28bn).
This marks the 11th consecutive quarter of profit for Deutsche Bank, the longest streak in at least a decade. The bank’s CEO, Christian Sewing, commented that they are on track to meet or exceed their 2025 targets.
Bank Announces Job Cuts and Management Board Revamp for Sustainable Profitability
Deutsche Bank also announced job cuts in non-client-facing staff as part of its efforts to reduce costs in the coming years further.
Deutsche Bank’s Challenges and Plans for Future Profitability
Deutsche Bank generated earnings during a challenging period for global finance, as banks were rescued on both sides of the Atlantic due to panic among investors and customer withdrawals.
Deutsche Bank’s share price declined by 15% during a single day, causing global market concerns and prompting support from Germany’s Chancellor Olaf Scholz. However, shares have since stabilized.
Analysts warn that the bank, one of the world’s most systematically important, remains vulnerable to a slowing economy, high inflation, war on the continent, and regulatory issues that have plagued it in the past.
To address these concerns and ensure “sustainable profitability,” Deutsche Bank has announced a major revamp of its management board.
The changes include those overseeing its big retail business and US operations, critical hubs for the bank’s sprawling global investment bank. While the bank’s first-quarter results exceeded expectations, there are still concerns about its long-term sustainability in a challenging global financial landscape.