This massive bank will now cut a whopping 3,500 jobs while rewarding its shareholders, an effort to win back investors.
Deutsche Bank said on Thursday it would cut 3,500 jobs, buy back shares and pay dividends, in its latest pitch to investors that its turnaround remains on track.
The news came as Germany’s biggest bank, seeking to put years of turmoil behind it and focus on steadier retail banking, reported a 30% drop in fourth-quarter profit that still beat analyst expectations.
The bank had already announced plans to cut jobs, but this was the first time it had put a number on the layoffs, equivalent to just under 4% of its global workforce of about 90,000.
The jobs affected will be back office roles.
The share buyback and dividends will total 1.6 billion euros ($1.7 billion) and will take place during the first half of the year.
Deutsche Bank also raised its forecast for revenue growth, and its shares rose 4% in early Frankfurt trade.
The announcements and earnings come at a significant turning point for Deutsche Bank, reports Reuters.
Deutsche Bank’s retail unit overtook the investment bank as the main revenue driver in 2023.
Analysts expect the retail operations to keep up its streak ahead of the investment bank this year and next even as central banks gear up to cut the interest rates that have supercharged banks’ bottom lines.
However, the rise of the retail division has also been scrutinized by regulators after Deutsche Bank botched the integration of its Postbank arm, leaving customers complaining that they were locked out of their accounts and unable to reach call centers.
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Also Read: A US Bank is Now Denying Customers Access to Money
Other Banking News Today
A US bank is now abruptly freezing accounts and money after a customer reported an incident involving a check deposit.
A Chase customer is reporting the bank froze their account and advised their funds would be on hold for 2-3 years while they ‘verify’ a check.
Going by the name Nooj, they explained on Reddit that they had deposited a check from their uncle and saw their account was frozen the next.
Nooj called Chase and was told the entire account was locked due to check holds, and they were advised to call back in a week to resolve the matter.
But when the time came, Nooj was told the bank account was still frozen and that they would have to once again call back for an update.
Unfortunately, on the third phone call to Chase, they were told the account would be closed in just four days if the matter wasn’t resolved, reports The-Sun.
“During the attempt to verify the check, I was informed that there was no associated phone number for my uncle in the Chase system, rendering verification impossible,” Nooj said.
“I discovered that the funds would be held for two to three years and, if not verified, sent to the state.
Despite my pleas, the representative provided no steps for verification and claimed there was nothing they could do.”
They said they were never informed that the check had to be verified until after the account was frozen and that Chase waited until after the check cleared to notify them that it would be held.
Nooj said they gave Chase their uncle’s phone number, but the bank said it wasn’t verified in its system.
“I now face months without access to my funds, causing significant stress, inconvenience, and financial hardship.
The lack of transparency in this process is deeply concerning,” they said.
“I have made upward of 20 calls, visited the branch, and filed a complaint with the CFPB in an attempt to find a path to verify the check.
“Every response I receive is that there is nothing they can do, and until they have a verified number for my uncle, they will continue to hold the funds. (Though they can’t tell me how to get his number verified).”
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Also Read: A Massive US Bank is Now Closing Credit Cards
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