Deutsche Bank posted first-quarter net profits of 120 million euros ($146 million) Thursday, a 79 percent fall from last year’s figure.
The bank announced plans to significantly reduce its workforce through the rest of 2018, particularly in its corporate and investment bank and infrastructure functions. It also aims to scale back operations in bond sales and equities trading, particularly in the United States and Asia.
The net profit number was significantly lower than a Reuters poll prediction of 376 million euros. The Frankfurt-based lender has been under scrutiny from shareholders for posting a series of losses, including a 497 million euro loss for 2017.
The Frankfurt-based lender has been under scrutiny from shareholders for posting three consecutive years of losses, including a 497 million euro loss for 2017. Revenues for the quarter were down by 5 percent on the prior year period at 7 billion euros, pressured by the appreciation of the euro against the dollar and lower corporate and investment bank revenues.
Christian Sewing, the bank’s recently-appointed chief executive officer, stressed the need to adjust its strategy in several areas of the business. “There is no time to lose as the
current returns for our shareholders are not acceptable,” he said in a statement.
Sewing’s appointment in early April, replacing former Chief Executive John Cryan, ended much uncertainty over the bank’s leadership but left a sense of ambivalence surrounding the future of its investment bank, which has been a main source of losses.
Sewing is the lender’s fourth chief executive in six years.
