Deutsche Bank had announced plans to exit several business areas that were no longer lucrative
Deutsche Bank had announced plans to exit several business areas that were no longer lucrative such as investment banking and trading. The bank has a rough road ahead as bond trading and lending are areas that come with strict regulations and stiff competition, while the retail banking business does not provide high margins. Deutsche Bank plans to fill the profit gap through cost-cutting.
Investors even put forth suggestions to break up the company, which were rejected by the leadership team as too tough to implement and simply wrong in terms of strategy. External experts opined that Deutsche Bank would need to overhaul its strategy and operations as well as look at raising a substantial amount of capital that would be necessary for the required restructuring.