Deutsche Bank to increase cost-cutting exercise
(14 November 2018 – Europe) Deutsche Bank has increased its cost-cutting plans after deciding the previous target of cutting expenses by €21 billion by 2021 was not ambitious enough.
James von Moltke, Deutsche Bank CFO, has suggested that the bank’s internal planning implied that “expenses need to be lower, potentially substantially lower than €21 billion” by 2021.
Recently, the lender has stooped repeating its €21 billion target, raising concerns it would be dropped. Mr von Moltke this week explained that the bank had done this because after next year, it wants to focus on its cost-income ratio rather than on absolute expenditure.
In October, the bank confirmed it was on track to lower costs this year by €900 million to €23 billion, and to cut another €1 billion next year.
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