Deutsche Bank is set to eliminate 3,500 jobs in the coming years as the benefit of increased earnings from higher interest rates starts to diminish.
The bank, which has around 7,000 employees in the UK, announced these job cuts while reporting a 16% decrease in profits to €4.2bn (£3.6bn). This decline follows a spike in the previous year’s profits, partly due to a one-time tax advantage.
The net profit was also impacted by costs associated with the bank’s cost-saving and efficiency initiatives, including €566m spent on restructuring and severance.
Despite these challenges, the bank’s revenues saw a 6% increase year-over-year, reaching €28.9bn, largely thanks to the European Central Bank’s raised interest rates. However, a 5% revenue growth in the fourth quarter fell short of what analysts had anticipated.
Christian Sewing, the Chief Executive, is focused on enhancing profitability and increasing shareholder returns. He commended the bank’s performance amid uncertain times, noting that Deutsche achieved a nearly €5.7bn pre-tax profit, the highest in 16 years.
In early trading in Frankfurt, Deutsche Bank’s shares went up by 1.1%. Since Sewing took over as CEO in 2018, the stock has risen about 7%, recovering significantly from its low point nearly four years ago.
