Published: Fri, April 27, 2018
Medical | By Jackie Banks

Deutsche Bank (DB) Stock Rating Upgraded by Zacks Investment Research

Deutsche Bank (DB) Stock Rating Upgraded by Zacks Investment Research

The business remains majority-owned by Deutsche Bank, and accounts for nearly all of the firm's asset management business.

Deutsche Bank AG, Germany's biggest lender, yesterday reported a slump in profits in the first quarter, with new CEO Christian Sewing announcing deep cuts at its flagship corporate and investment banking division to tackle its woes.

The recent appointment of Sewing - who has a background in retail banking, auditing and risk - had suggested a shift away from the investment bank.

Earnings from Germany's flagship lender fell short of analysts' expectations in the first quarter. A startup with 200 employees beat out a banking giant with 100,000 employees.

"The call to action is simple: Focus, grow revenues and significantly reduce costs", Mr. Sewing said. The bank will cut layers of management, and shrink the size of its executive board. Mr. Cryan hasn't commented on the criticism. "This is what we will focus on more decisively". Earlier this month, JPMorgan analysts recommended that Deutsche pull back from its United States operation - particularly equities and rates - to unlock value for shareholders.

Germany's largest lender will scale back USA rates sales and trading, reduce the corporate finance business in the US and Asia, and review its global equities business with a view toward cutting it back, the bank said in a statement Thursday. The bank will also continue to shed real estate. "Also, the newly appointed chief executive officer remains confident of staging a turnaround fast through improvement in all the business segments".

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Cellphone video obtained by CNN partner CTV appears to show a tense standoff with a suspect after the incident. He had an interest in volunteering and helping people from a young age and wanted to work with seniors.

Yet the aggressive expansion eventually led to a spate of legal scandals that took Cryan a good part of his three-year tenure to clean up. That new operations chief, Frank Kuhnke, won't serve on the management board, unlike his predecessor; the role was downgraded to one level below the senior ranks. Bank of Montreal Can raised its stake in Deutsche Bank by 318.5% in the 4th quarter. Revenues for all businesses were lower year-on-year.

According to Zacks, "On the NYSE, shares of Deutsche Bank have underperformed the industry, over the past six months".

However, neither of Thursday's results gave much clarity to investors.

"Deutsche Bank is deeply rooted in Europe - here we want to provide our clients access to global financing and treasury solutions".

Even compared to other European investment banks still battling through multiyear turnarounds, Deutsche Bank's challenges are enormous, investors say.

While shrinking the investment bank will make it harder for Sewing to return Deutsche Bank to growth, it could help him reach a target of 23 billion euros ($28 billion) in adjusted costs this year.

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