City braces for job losses at Deutsche Bank

 
Tim Wallace
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INVESTMENT banking jobs will go at Deutsche Bank as the German lender plans to make its operations more efficient, the bank’s annual report said yesterday.

By contrast the bank’s executive committee will be paid €38.5m (£3.2m) for the year, up 46.4 per cent on 2012’s payouts.

It comes after a tough year for Deutsche Bank – its revenues fell 5.4 per cent in the year to €31.9bn though its net profits more than doubled to €681m.

The bank’s corporate banking and securities (CB&S) division particularly suffered, with revenues down 11.8 per cent to €13.6bn.

However, thanks to falling expenses its pre-tax income did increase 5.6 per cent to €3.1bn.

“CB&S is now leaner and more efficient, using less balance sheet and risk-weighted assets, with a reduced headcount and lower overall expenses,” the annual report said.

However, more cuts are still needed.

“In geographical terms, the corporate division will continue to streamline the business” – part of a series of moves which is expected to cost the investment bank hundreds of jobs.

Pay across the business edged down. Bonuses across the 98,254 staff were unchanged at €3.2bn, while total pay edged up to €10.2bn.

Co-chief executive Anshu Jain’s pay shot up 70.6 per cent to €10m, including long-term incentive payments and pension contributions.

His colleague co-CEO Jurgen Fitschen’s pay increased 69.8 per cent to €7.3m.

“Our financial results reflect the impact of investments in our platform and our determination to deal decisively with litigation matters arising from legacy issues,” said Jain.

“These factors produced an unsatisfactory financial result for shareholders. Nonetheless, operating performance in our core businesses was the second highest in a decade.

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