(09 October 2020 – Germany) Deutsche Bank’s strategic priority remains implementing an ambitious turnaround plan but the group has not ruled out acquisition activity if the beleaguered bank’s share price bounces back.
Deutsche Bank’s market valuation would place it in a subordinate position with most other partners of comparable size with a stock market capitalisation of US$18 billion compared to US$41 billion for UBS. While revenue is being bolstered by the trading environment, the bank’s plan to reduce FTE (full time employees) has hit a snag because fewer employees want to take a new job during the crisis. Deutsche Bank may have to consider ‘new ideas’ to increase the speed with which people are leaving.
Deutsche Bank CEO Christian Sewing confirmed he was ‘laser focused’ on executing on the four-year strategy which runs through 2022 while also indicating a key phase of the bank’s transformation will be completed within the next three months.
“We’ve said 2019 and 2020 are the key years of the restructuring, If the bank’s valuation were to recover we then have a different position, a better position. Consolidation needs to happen in Europe but for Deutsche Bank it’s important that we’re not a junior partner” stated Deutsche Bank CEO Christian Sewing.