Deutsche Bank has made the decision to cut over 100 senior positions in its private wealth and retail banking divisions as part of a broader strategy to streamline operations and reduce costs. This move is part of the bank’s ongoing efforts to improve financial performance and meet its efficiency goals for the coming years.
According to reports, the latest round of job cuts has affected 111 senior managers in the private banking division, mostly high-ranking global managing directors and directors. These cuts are aimed at reducing the bank’s cost-to-income ratio, which the company aims to bring down to between 60% and 65% by 2025, a significant decrease from its current ratio of about 77% for the first nine months of this year and 80% in 2023.
The decision comes as Deutsche Bank pushes for cost reductions and revenue growth across all its divisions. Despite contributing 31% of the bank’s overall revenue, the private banking division has faced challenges in recent years, including IT issues, underperformance, and not meeting profitability targets. As a result, two former heads of private banking were let go due to their inability to hit financial goals.
Investors remain hopeful for improvement under the leadership of Claudio de Sanctis, the current head of private banking. De Sanctis has already implemented significant changes, including merging management levels, closing 300 branches in Germany, reducing front-office staff, and cutting back on external consultants. Looking ahead, he has promised to hire more wealth management professionals in the coming year to support future growth.
In addition to internal restructuring, Deutsche Bank has made a significant investment in its Indian operations, committing €571 million to enhance its presence in the region. The focus will be on key growth areas such as sustainable finance and digital transformation, with the bank aiming to capitalize on India’s position as a global business hub amid shifting supply chains, digitalization, and demographic trends.
Alexander von zur Muehlen, CEO of Deutsche Bank’s EMEA region, emphasized the bank’s long-term vision for India, stating that the country is well-positioned to benefit from global shifts. Kaushik Shaparia, CEO of Deutsche Bank India, echoed these sentiments, calling the new investment a strong endorsement of the bank’s growth prospects in the region. Through these efforts, Deutsche Bank aims to strengthen its client relationships and offer world-class services in India’s rapidly expanding market.