Remember last week, when Deutsche Bank said a report they plan to save between 1 billion euros ($1.43 billion) and 2 billion euros a year and "win market shares" by purging employees was total BS? According to CEO Josef Ackerman, it's more like 50 percent BS/50 percent not so much BS.
Mr. Ackermann conceded that European banks don't face a "rosy" future in their home markets unless they can gain market share. Deutsche Bank has made an attempt at this by taking over retail bank Deutsche Postbank and other units. Deutsche Bank will need to "consider job cuts if markets don't improve in September and beyond," Mr. Ackermann said at a banking-sector conference in Frankfurt on Monday.
Against the backdrop of limited income growth, Mr. Ackermann underlined the importance of keeping costs under control. A recent media report suggested that Deutsche Bank might step up efforts to improve efficiency and aim to make additional annual savings of €1 billion to €2 billion (about $1.42 billion to $2.84 billion), resulting in a possible reduction of staff in investment banking. The investment-banking unit, which is responsible for the lion's share of the group's earnings, is already implementing a cost-reduction project known as Integra. It aims to better integrate the investment-banking unit's corporate financing, transaction banking and trading activities, and through doing so add €800 million in total to pretax profit in 2011 and 2012.