Wednesday 3 July 2019 3:49 pm

Deutsche Bank restructuring to cost 'up to €5.6bn'

The cost of a radical shake-up at Deutsche Bank could reportedly total €5.6bn (£5bn), as the German lender presses ahead with a sweeping turnaround plan that is likely to hit its investment banking division.

A vast overhaul of the business is likely to cost several billion euros, sources told Reuters and the FT, as it looks poised to axe between 15,000 and 20,000 jobs as part of a revamp.

Read more: DB considers cutting up to 20,000 jobs

Speculation over cuts comes several months after merger talks between Deutsche Bank and German rival Commerzbank collapsed.

A tie-up between the two sides would have created the second largest bank in Europe, but after six weeks of negotiations the potential deal collapsed, with both firms citing the failure to risks of doing a deal, restructuring costs and capital demands.

Chief executive Christian Sewing, who replaced John Cryan as boss in April last year, has embarked on a major cost-cutting agenda since taking the reigns at the firm.

Read more: DB faces money laundering investigation

Last month Deutsche Bank, which currently employs more than 90,000 people, was also dealth a fresh blow after the New York Times reported that federal authorities were investigating whether Deutsche Bank complied with laws meant to stop money laundering and other crimes.

In a statement Deutsche Bank said: “As we said at the AGM on 23 May, Deutsche Bank is working on measures to accelerate its transformation so as to improve its sustainable profitability. We stated that we would update all stakeholders if and when required.”