Layoff: Germany's largest financial institution Deutsche Bank is going to cut 3,500 jobs within the next two years. This comes, as the bank is undertaking a strategic cost-reduction initiative.
"Cost discipline remains a high priority," AFP quoted the CEO Christian Sewing as saying in a message to Deutsche staff while praising the company’s performance amid "an uncertain environment".
The bank's shares went up by nearly 5%, once the job cuts were announced. The lender’s net earnings witnessed a decline of 16% at 4.2 billion euros in 2023. The lender is pressing ahead with a 2.5-billion-euro efficiency push aimed at improving profitability. The bank recorded a pre-tax profit of nearly 5.7 billion euros which is the highest in the last 16 years.
The lender's operational expenses in 2023 included those on restructuring and severance. It amounted to 566 million euros. This was part of a savings and efficiency programme initiated in 2019.
Following the higher interest rate sanctioned by the European Central Bank, the bank saw a revenue surge of 6%, reaching 28.9 billion euros. As per CFO James von Moltke in a press conference said that the bank expects to spend nearly 400 million euros in 2024. The expenses would include restructuring costs and further severance packages.
For 2025, the bank has laid out plans to get revenues of 32 billion euros and maintaining the operational cost at around 20 billion euros. The bank also plans to increase the dividends of 0.45 euro per share for 2023, marking a 50% increment from the previous year.
Meanwhile the CEO added that the bank is aiming to pay a dividend of one euro per share for the financial year 2025.
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