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Deutsche Bank eyes cost headwinds in Q3
FRANKFURT (Reuters) - Deutsche Bank AG (DBKGn.DE) expects to see one-off costs in the third quarter linked to its job cuts, litigation expenses and the reduction of risk-weighted assets, Co-Chief Executive Anshu Jain told a financial conference.
Jain reiterated that Germany's largest bank had seen solid performance in the third quarter, particularly in investment banking.
"On the revenue side we are in line, but we definitely have headwinds on the cost side," Jain told the conference in London, which was monitored over the Internet.
To free up equity capital, Deutsche plans to slash risk weighted assets by about 90 billion euros ($117 billion) by the end of the first quarter 2013. Deutsche reckons with costs of around half a billion euros as a result, Jain said.
Germany's flagship lender plans to cut more than 1,900 jobs, mainly in investment banking and is also battling law suits by investors and regulators.
Deutsche aims to save about 4.5 billion euros in costs by 2015 to steer against the loss of profitability and tougher international regulation of banks in the wake of the financial crisis.
(Reporting by Philipp Halstrick, writing by Jonathan Gould; Editing by Bernard Orr)
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