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Deutsche Bank will cut 3,500 jobs even as it records $4.5 billion profit last year

Deutsche Bank says it would cut 3,500 jobs as part of efforts to slash costs by about $2.7 billion through next year

Via AP news wire
Thursday 01 February 2024 06:42 EST
Germany Deutsche Bank
Germany Deutsche Bank (Copyright 2019 The Associated Press. All rights reserved.)

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Deutsche Bank said Thursday that it would cut 3,500 jobs as part of efforts to slash costs by 2.5 billion euros ($2.7 billion) through next year and boost profits even as Germany’s largest lender benefits from higher global interest rates.

The bank said it would seek to streamline its marketing network and computer systems and software as it seeks to cut costs. It said the reduction in the number of positions would mostly be for jobs that don't involve directly dealing with customers.

The announcement came alongside the release of annual profit figures showing the bank made 4.2 billion euros ($4.5 billion) last year, a decline of 16% compared with 2022. It was, however, the fourth straight year in which the bank made a profit.

The bank has benefited along with its peers from the global rise in interest rates, which can increase the profit margin between what the bank pays out in interest and what it can earn.

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

Revenue grew 6.8%, to 28.9 billion euros. The company announced it was raising its dividend to 45 euro cents per share from 30 cents per share and would put more cash in shareholders' hands by buying back 675 million euros in shares by the end of June.

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