Deutsche Bank to Become ‘Even More Technology Driven' While Cutting Costs

Core Viewpoint - Deutsche Bank is focused on enhancing efficiency through cost-cutting measures, including workforce reduction, technology investment, and potential business unit closures [1][2]. Cost-Cutting and Efficiency Measures - The bank aims for a year-over-year revenue increase of 2 billion euros (approximately $2.1 billion) while maintaining flat adjusted costs, having already achieved 1.67 billion euros in savings by eliminating 3,500 roles, primarily non-client-facing positions in high-cost areas [2][3]. - In 2024, Deutsche Bank hired 1,300 technology specialists and added 400 roles aimed at revenue generation to support long-term cost improvements and growth [3]. Personal Banking Division Transformation - Deutsche Bank is undergoing a significant efficiency transformation in its Personal Banking division, which began in 2021, involving a review of its service model and branch footprint, resulting in the closure of 400 branches since 2021, including 125 in 2024 [4][5]. - The bank is also closing a mid-double-digit number of smaller branches in Germany while introducing new formats and technologies, enhancing its capacity for video and telephone advice, and investing in its app and digitization efforts [5]. Profitability and Business Review - Profitability and higher returns, particularly in German Personal Banking, are top priorities, with plans to streamline the branch network and modernize brands while leveraging synergies from a unified IT environment [6]. - The bank has initiated reviews in certain lending portfolios, such as mortgages, and is already observing benefits from these strategic choices [7].