Deutsche Bank started the year 2023 better than expected with a profit in the billions. In order to drive profits further up, the board wants to reduce costs even more than previously planned, as Germany’s largest financial institution announced on Thursday in Frankfurt.
The Dax group wants to save costs through “strict hiring restrictions in customer-remote areas”, “targeted job cuts in management levels”, the streamlining of the construction financing business and the further downsizing of the technology center in Russia.
In the first quarter, the pre-tax profit increased by twelve percent compared to the first three months of the previous year to a good 1.85 billion euros. According to Deutsche Bank, this is the highest quarterly result since 2013. The bottom line is that the shareholders of the Dax group accounted for around 1.16 billion euros in surplus after 1.06 billion euros a year earlier.
The results of the first quarter show that the bank is on the right track to “achieve or exceed the targets set by the board for 2025,” said CEO Christian Sewing. “We want to implement our strategy even faster with the additional measures announced today.” The additional cost savings should now add up to 2.5 billion euros, previously 2.0 billion euros had been targeted.