FRANKFURT/SYDNEY/HONG KONG: Deutsche Bank shares rose on Monday as it launched one of the biggest overhauls of its investment bank since the financial crisis by cutting 18,000 jobs around the world, starting the day with cuts in Asia.
The lender announced the job losses on Sunday as part of a restructuring plan that will cost 7.4 billion euros ($8.3 billion) and see it undo years of work that had aimed to make its investment bank a major force on Wall Street.
As part of the overhaul, the bank will scrap its global equities business and cut some operations in its fixed income, an area traditionally regarded as one of its strengths. Shares in Deutsche Bank opened up more than 3 per cent in Frankfurt to reach their highest value since May 2.
Deutsche Bank CEO Christian Sewing, who has called the shake-up a “restart” for the bank, is due to speak to the media initially and then address analysts later on Monday. Deutsche said the restructuring would push the bank into a loss this year, meaning it will have been in the red four out of the past five years. It was unclear when it would return to profit. — Reuters
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