Deutsche Bank Says More Cost Cuts Won't Be at Expense of Revenue
(Bloomberg) -- Deutsche Bank AG’s future cost cuts won’t come at the expense of generating revenue, Chief Financial Officer James von Moltke said at a conference in London on Wednesday.
- Von Moltke says bank seeking to improve upon its 21 billion-euro cost target for 2021, compared with 23 billion-euro target for this year.
- Von Moltke’s comments are intended to alleviate concern that the bank can stem its prolonged revenue decline, with top-line growth a closely-watched metric.
- The bank is signaling the potential for hundreds of millions of euros in extra revenue after redeploying funds to growth area.
- Von Moltke highlights transaction banking, fixed income for growth and that a “big portion” of its business is in growth markets.
- Deutsche Bank shares fell as much as 2.2 percent in Frankfurt. They have dropped more than 45 percent this year.
- The lender’s stock currently has 17 sell and 3 buy recommendations, with 13 analysts neutral on the shares.
- Ex-JPMorgan Chase & Co. finance head Doug Braunstein has built a 3.1 percent stake in Deutsche Bank through his Hudson Executive Capital LLP fund. He’s staking about $660 million on the belief that Sewing will restore the bank to profitable growth.
- Read why investors are getting tired of hearing Deutsche Bank’s growth promises.
- Here’s a QuickTake Q&A explaining the bank’s challenges in more detail.
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