Deutsche Bank's US Investment Banking Might See 20% Job Cut
Zacks Investment Research | May 08, 2018 10:09PM ET
Deutsche Bank (DE:DBKGn)’s (NYSE:DB) restructuring overhaul in order to improve growth prospects continues. Citing people close to the matter, Bloomberg reported that the German lender might cut down its U.S. workforce by 20%.
Late last month, news of the bank trimming U.S. jobs by 10% had spread in the market. All these restructuring moves form part of the new CEO Christian Sewing’s strategy to return Deutsche Bank to its former financial health.
A spokesperson of the bank, Joerg Eigendorf, denied having such a high job reduction target in the United States. Also, people briefed on the matter said that the bank is close to making a decision and the final figure might be lower.
Lately, the bank has been busy remodeling its U.S. investment bank division. It is shifting its New York headquarters from the famous Wall Street to Columbus Circle. The relocation is expected to be completed by 2022 and would reduce the bank’s commercial presence in the city by 30%.
Moreover, Deutsche Bank is closing down its Houston office, as it is cutting down the investment banking coverage of the U.S. oil and gas sector. This move will be impacting jobs of around 50 employees related to the sector. However, it would continue to provide U.S. oil and gas clients with debt capital markets and corporate banking treasury products.
Though Deutsche Bank is undertaking steps to achieve various financial targets laid down by the new CEO to deliver a turnaround, stringent regulations and low interest rates environment might hamper its growth to some extent. Also, involvement in legal proceedings remain another concern.
In six months’ time, the company’s shares have lost 24.2% on the NYSE against nearly 1% growth recorded by the industry .
Deutsche Bank currently carries a Zacks Rank #5 (Strong Sell).
Stocks to Consider
Lloyds Banking Group (LON:LLOY) plc (NYSE:LYG) sports a Zacks Rank #1 (Strong Buy). Its earnings estimates for 2018 have been revised slightly upward over the last 60 days. Also, its shares have gained 3.3% in the past six months. You can see .
The Bank of N.T. Butterfield & Son Limited (NYSE:NTB) has witnessed 4.1% upward estimate revision in the last 60 days. In six month’s time, the company’s shares have gained more than 36%. It carries a Zacks Rank #2 (Buy).
Get The News You Want
HSBC Holdings (LON:HSBA) plc (NYSE:HSBC) carries a Zacks Rank of 2. The Zacks Consensus Estimate for the company has remained stable for the current year, in the last 60 days. Its share price has gained 1.9% in the past six months.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.