Deutsche Bank slashes repo book as Sewing cuts bite

Sewing, Christian (Deutsche Bank) lo res 230x150 from DB for publ
By Owen Sanderson
26 Jul 2018

The package of business cuts unveiled by new chief executive Christian Sewing earlier this year has already started to bite on Deutsche’s balance sheet, with trading assets plunging and borrowing in repo down 95%. Despite the cuts, though, the bank beat rock bottom expectations this quarter, but still faces a challenge to return to sustainable profit-making, according to analysts.

As Deutsche Bank revealed last week, it is back into profit-making territory, with its €400m net income comfortably trouncing average consensus estimates of €159m.

But it made this sum on a balance sheet of €1.42tr, and the bank’s near term target of beating 4% return on tangible ...

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