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.

Key Insights

  • 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.

Market Reaction

  • Deutsche Bank shares fell as much as 2.2 percent in Frankfurt. They have dropped more than 45 percent this year.

Get More

  • 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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