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Deutsche Bank's UK arm braces for further cuts as new CEO looks for savings

The new chief at troubled banking giant Deutsche Bank has suggested Germany's biggest lender could further trim down its investment bank, potentially meaning more job cuts in the UK.
Christian Sewing told the lender's 98,000 staff in a memo that he would "thoroughly analyse" the investment banking arm, which has long weighed on the bank's performance, contributing to three years of losses.
"We'll have to further adapt our revenue, cost and capital structure," Mr Sewing told staff of the division.
Deutsche Bank slumped to a third consecutive after tax loss of €735m (?640m) for 2017, although one-off costs arising from Donald Trump’s US tax reforms pulled it into the red.
Poor investment banking returns and slow cost-cutting led to Yorkshire-born John Cryan being ousted as chief executive by the board on Sunday.
Paul Achleitner, the lender's chairman, thanked Mr Cryan for playing a "critical role in the almost 150 year history of Deutsche Bank" and for laying "the groundwork for a successful future".
Deutsche Bank's UK arm braces for further cuts as new CEO looks for savings

Deutsche Bank has already embarked on heavy cost-cutting

Credit:
ARNEA DEDERT/EPA
But Mr Cryan is unlikely to be missed by investors, who became dismayed at the bank under-performing its US peers.
Analysts said the appointment of Deutsche Bank lifer Mr Sewing – who first joined the bank as a teenager at a branch in west Germany – suggested the lender was placing a greater emphasis on its domestic retail bank.
“The role is a balancing act between two cultures, stemming from German banking and the Anglo-Saxon investment bank. This appointment strengthens on the former," commented George Karamanos, analyst at Keefe, Bruyette & Woods.
Deutsche Bank employs more than 8,000 people in the UK, predominantly focused in the investment bank.
Deutsche Bank already announced up to 500 investment banking job cuts earlier this year across its international business.
The lender committed to London last year by signing up to a 25-year lease on a new office in Moorgate, with a move in date of 2023. This only has space for 5,000 employees and so already implies downsizing.
Deutsche Bank shares were up by as much as 3.3pc in early trading in Frankfurt today before closing up 1.2pc.
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