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Deutsche Bank Faces Pressure to Shift Profit Reliance Away from Investment Banking
Germany’s leading financial institution, Deutsche Bank (DBK), is under increased scrutiny to guarantee a more substantial portion of its earnings originates from dependable sectors rather than the unpredictable investment banking division, according to a prominent shareholder on Wednesday. The call for diversification underscores the ongoing challenges Deutsche Bank faces in stabilizing its revenue streams.
Call for Earnings Diversification
Andreas Thomae of Deka Investment stated that Germany’s biggest bank should enhance earnings from its asset management, retail, and corporate client segments.
- Enhance asset management profits.
- Boost earnings from retail banking operations.
- Grow revenue from corporate client divisions.
Investment Banking’s Dominance
“The investment bank, prone to volatility and carrying elevated risks, still constitutes the majority of profits. Significant progress is required, notably within the retail sector,” Thomae commented.
Shareholder Meeting Remarks
These statements were scheduled for delivery at Deutsche Bank’s yearly shareholder session on Thursday but were released publicly on Wednesday.
Background: 2019 Overhaul
In 2019, Deutsche Bank initiated a restructuring plan intending to decrease its dependence on investment bank income. However, the success of this objective has been inconsistent.