Deutsche Bank may announce changes in its investment banking unit: Report

The bank is considering cuts in the investment banking unit, but no decision is final

Reuters  |  Frankfurt 

may announce changes in the strategy of its unit on Thursday along with quarterly earnings, a German newspaper reported on Tuesday.

The bank is considering cuts in the unit, but no decision is final, Handelsblatt newspaper reported.

A spokesman for declined to comment.

The bank is considering cuts to equities trading, known as cash equities, and the prime brokerage, which serves hedge funds, the paper said. Cuts to trading of US municipal bonds and parts of its Asia business are also being considered.

Deutsche has been conducting a global review of its to determine the way forward as revenues shrink and clients and staff leave.

Initial results of the review, known internally as Project Colombo, were expected soon.

Earlier this month, the bank got a new chief executive, Christian Sewing, who faces the same strategic problem that has long preoccupied its top management - whether or not to override the rainmakers and big earners at its powerful to shrink that business.

The appointment of Sewing - with a background in retail banking, auditing and risk - along with the recent resignation of one of Deutsche's top investment bankers, Marcus Schenck, suggests a shift away from the investment bank, analysts and investors have said.

First Published: Tue, April 24 2018. 14:25 IST