Record-Breaking Profits: German Bank Posts Best First Half Earnings Since 2007, Achieving €1.5 Billion - Deutsch Bank acquires approximately 1.5 billion euros in revenues during the first half of 2007
Deutsche Bank, Germany's largest lender, has reported a record $1.5 billion profit in the first half of 2021, marking its best first-half profit since 2007. This significant achievement comes after the bank undertook a strategic shift in 2019, focusing more on Europe and less on high-risk activities.
The strategic move was a response to numerous scandals surrounding Deutsche Bank's investment business in 2019. As part of the restructuring plan, Deutsche Bank announced a major reduction in its global workforce, aiming to cut around 18,000 jobs globally by 2022, primarily in its investment banking and corporate finance divisions.
Thousands of jobs were indeed cut, with approximately 3,500 jobs eliminated in 2019 alone. This year, Deutsche Bank announced plans to cut a further 2,000 jobs in its retail business. The cost-reduction strategy also included job cuts at the bank.
The strategic shift also aimed to redefine Deutsche Bank's profile to be more centered on Europe. As a result, the bank has been focusing on improving its operational efficiency and enhancing its digital offerings, which typically involves reducing physical branch presence. Although specific numbers for branch closures solely related to its European strategy are not detailed, the overarching goal has been to rationalize operations and enhance digital services.
The number of Deutsche Bank's branches is set to decrease from 550 to 300 by 2026. This reduction in physical presence has also affected Deutsche Bank's subsidiary, Postbank.
Since 2020, Deutsche Bank has been posting profits again, a positive turnaround after years of losses. The bank's strategic shift seems to be paying off, as it continues to focus on its core strengths in Europe and adapt to the changing market conditions and technological advancements.
However, these changes have come at a cost, with significant job losses and a reduced physical presence. The challenges faced by the German banking sector in adapting to these changes are not unique, reflecting the broader struggles of the industry in the digital age.
[1] For more information on the impact of these changes on the German banking sector, please refer to the associated sources.
The financial change in Deutsche Bank, with its record profit of almost 1.5 billion dollars in the first half of 2021, can be attributed to the bank's strategic shift which started in 2019, aiming to improve its operational efficiency and enhance digital offerings in the business and finance sector.
This transformation has consequently led to a decrease in the number of Deutsche Bank's branches from 550 to 300 by 2026, with job cuts in both its global workforce and European subsidiary, Postbank.
