Olaf Scholz’s re-election hopes are. being hit by the country’s struggling economy. (Image: Getty)
Shares in largest lender plunged by 6%, after the bank announced a massive drop in profits.
Deutsche Bank’s profits plummeted by an astonishing 92%, as economy struggled.
Profits attributable to shareholders dropped to €106 million (£89m) in the final three months of 2024, down from €1.26 billion in the fourth quarter of 2023.
The earnings crash is likely to lead to massive redundancies, which could affect the bank’s UK employees.
Christian Sewing, chief executive, said: “Our clear ambition is to operate the bank with a lower headcount.
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Deutsche Bank’s profits plunged by over 90& (Image: Getty)
“We plan to actively reduce management layers and roles.”
More than 90,000 people work for the banking giant in offices worldwide, including 7,000 in the UK.
This is not the first time the bank’s management has had to wield the axe after disappointing financial performance.
Last February, Deutsche Bank announced plans to slash staff numbers by 3,500 worldwide in a major shakeup.
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Mr Sewig said mortgages and “middle-market lending” in were pulling down the wider business.
“The real challenge which we are working on is in retail Germany,” he added.
The bank’s struggles are symptomatic of a greater malaise in the German economy, which has contracted for a second year.
German industry is grappling with higher energy prices in the wake of ‘s full-scale invasion of .
At the same its car industry , which employs around 780,000 workers and contribute 5% to GDP, is facing intense pressure from Chineses rivals.
This last quarter, Deutsche Bank had to shell out €1.7 billion in legal fees and litigation costs.
Most of this money was related to payments Deutsche Bank had to make to disgruntled shareholders of Postbank, which it acquired in 2018.
Shareholders initiated court proceedings, claiming they had been short-changed in the takeover.