Deutsche Bank Considers More Cuts to Back Office Amid Cost Headwinds

(Bloomberg) -- Deutsche Bank AG is considering deeper cuts to its support functions after running up a few unexpected bills.

“There’s wriggle room for further efficiency improvements, for example by interlocking more closely the back office of the corporate bank and the investment bank,” Chief Financial Officer James von Moltke said at the virtual annual general meeting on Thursday. He pointed to cost “headwinds” as a reason for potentially activating the plans.

The lender, which is halfway through a four-year turnaround plan centered around slashing staff and costs, recently scrapped its full-year cost guidance after facing higher-than-expected contributions to several regulatory insurance funds. It’s already relocating 100 jobs from London to cheaper locations such as Frankfurt and Dublin as part of an effort to increase savings, Bloomberg News has reported.

Von Moltke said he was “confident” Deutsche Bank will meet next year’s profitability target, citing revenue growth that has exceeded expectations.

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