Deutsche Bank to Lay Off Employees, Reduce Management Roles

Frankfurt, Germany - Deutsche Bank AG plans to reduce management roles and cut headcount in the coming years as it seeks to lower costs following higher-than-expected expenses in the final months of 2022.

Key Points:

* Expenses rose 14% year-over-year, overshadowing strong performance in the investment bank.
* CEO Christian Sewing aims to operate with a "leaner platform" and "lower headcount."
* Deutsche Bank will invest in growth areas while balancing cost controls.
* The bank will "actively reduce management layers and roles" to improve efficiency.
* Business leaders will have more autonomy over cost control.
* Deutsche Bank posted underwhelming results, with costs offsetting revenue gains.
* The lender plans to distribute €2.1 billion in capital this year, including dividends and share buybacks.

Investment Bank Performance

Deutsche Bank's investment bank performed well in the fourth quarter, with fixed-income trading recording its best performance ever. Revenue increased 26% in fixed-income and currencies, while advisory and underwriting income rose 71%.

Corporate and Private Banking Challenges

Revenue declined in the corporate and private bank due to falling interest rates and a weak economy.

Loan Loss Provisions

Deutsche Bank expects loan loss provisions to moderate in 2023, after raising its guidance twice in 2022.

Outlook

Deutsche Bank remains committed to improving efficiency and delivering strong returns to shareholders. The bank will explore measures to further increase returns in the coming years.

Analyst Commentary

Analysts at KBW believe that Deutsche Bank's results were underwhelming, with costs outweighing revenue gains.