Capital show: The performance by Deutsche’s investment banking arm is good news for the whole sector as it signals a wider recovery
31 July 2012
Deutsche Bank today added to fears of major job cuts in the City as it admitted investment banking profit plunged 63% in the second quarter of the year.
Anshu Jain, co-chief executive, said: “The European sovereign debt crisis continues to weigh on investor confidence and client activity across the bank.”
Jain, who used to run the investment banking side of the business, plans to overhaul the bank’s strategy and has already lowered its risk-taking profile.
Analysts said the profit fall was similar to rival groups but pointed out that costs had not been cut fast enough, meaning pre-tax profits were hit harder. Second-quarter investment banking profit was €357 million against €969 million a year earlier.
