Deutsche Bank looking to cut costs by $5.8bn

12 September 2012

Deutsche Bank is planning to reduce its costs by €4.5 billion ($5.8 billion) by the beginning of 2015, it has been revealed.

In a statement detailing its strategic and financial aspirations for the coming years, the major European financier also announced its intention to boost its return on equity after tax to a minimum of 12 per cent in the same timeframe.

This represents a marked upturn on its return of 8.2 per cent posted in 2011 and the bank admitted it will need to take measures such as implementing more job cuts in order to achieve such targets.

Juergen Fitschen and Anshu Jain, co-chief executive officers of the lender, noted that the medium-term economic recovery and regulatory outlook remains challenging as the eurozone debt crisis rumbles on.

"Hence we need to significantly improve our operating performance and efficiency," they added.

The officials went on to insist that it is "not enough" to simply adapt the bank's strategy to fit with the changing demands of consumers.

By Tony Aynsley

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