Richard Parks Deutsche Bank has announced a significant restructuring effort, cutting over 100 senior roles in its private wealth and retail banking divisions as part of a broader strategy to enhance efficiency and reduce costs. This latest move aligns with the bank’s ongoing mission to improve financial performance and meet its ambitious cost-cutting objectives.
The decision affects 111 high-level positions, primarily among global managing directors and directors within Deutsche Bank’s private banking division. The bank’s target is to reduce the cost-to-income ratio in its private wealth and retail units to between 60% and 65% by 2025, a significant reduction from its current ratio of about 77% in 2023.
This cost-cutting initiative is part of Deutsche Bank’s broader push to drive growth across all divisions and enhance profitability. Although the private banking division generates about 31% of the bank’s total revenue, it has faced challenges, including underperformance and failure to meet cost targets. These difficulties have led to the departure of two former heads of private banking, who struggled to deliver on the division’s profitability goals.
Despite these setbacks, investors remain optimistic under the leadership of Claudio de Sanctis, who took charge of private banking. De Sanctis has already begun to streamline operations by consolidating management levels, closing 300 branches in Germany, reducing front-office staff, and cutting external consultancy costs. Looking ahead, he plans to hire additional wealth management professionals to help reposition the division for future growth.
In addition to its internal restructuring, Deutsche Bank is making significant investments in its Indian operations, committing €571 million to expand its presence in the country. The bank’s focus will be on sustainable finance and digital transformation, capitalizing on India’s growing role in the global economy.
Alexander von zur Muehlen, CEO of Deutsche Bank’s Asia Pacific, Europe, Middle East & Africa (EMEA) region, highlighted India’s strategic importance, pointing to the country’s potential to benefit from major global shifts, such as digitalization and supply chain changes. Kaushik Shaparia, CEO of Deutsche Bank India, affirmed that the investment reflects the bank’s confidence in the country’s growth prospects. Through this expansion, Deutsche Bank aims to strengthen its market position in India, offering cutting-edge financial services to clients in one of the world’s most dynamic economies.