Deutsche Bank plans to continue to reduce costs by reducing the workforce, adding technologies and possibly to the closure of commercial units, announced Thursday, January 30.
“We are determined to make this bank more effective, which means to change the way we do things”, CEO of Deutsche Bank Christian seam said in Prepared remarks For a fourth quarter gains Call with analysts Thursday, January 30. “It starts with a simpler organizational configuration and a smaller workforce. And that forces us to become even more focused on technology, which will also improve the customer experience. »»
The bank is targeting an increase from one year to the other of income of 2 billion euros (around 2.1 billion dollars) while keeping its costs adjusted flat, said Sweing. It has already produced 1.67 billion euros in savings, in part by removing 3,500 roles, most of which were roles not oriented towards high cost locations.
While reducing these roles, the bank has also added employees to technology, controls and revenue generation, he said.
“In 2024, we hired 1,300 technology specialists and added 400 targeted roles that generate income, supporting long -term costs,” said Sewing.
In her personal banking division, Deutsche Bank continues to continue a “major transformation of efficiency” that she started in 2021 and includes an examination of her service model and her branch footprint, he said . He closed 400 branches since 2021, including 125 branches in 2024.
The bank said in September that when closing a smaller number branches In Germany, he also added new formats and technologies. He said that he would increase his ability to advise via video and telephone, invest more in his application and any other scanning, and add more private bank centers, automatic distributors of modern tickets and community events to his branches .
The sewing said in the prepared remarks on Thursday: “The profitability and higher yields, in particular in German personal banks, will remain the main priorities, and we expect to deliver them via an additional rationalization of our network of branches and The modernization of our two brands while taking advantage of the synergies of our unified computer environment.
Deutsche Bank also plans to improve the profitability of its lower performance activities by providing improvements in efficiency or leaving these companies, he said.
“We have already started these opinions in certain loan portfolios, such as mortgages, and see the advantages of these choices,” said Sewing.
