Deutsche to deleverage

Ian Rogers
Germany's Deutsche Bank overnight outlined details of a shake up of its business that centres on its European roots.

One goal outlined is to "rationalise its geographical footprint by exiting or reducing its presence in some countries," a stance bound to stir conjecture over real priorities in many local markets.

The keyword Asia did not appear anywhere in the bank's announcement, which did open with a line on "reaffirming a commitment to being a leading global bank based in Germany."

The sale of the Postbank subsidiary is one pillar of the plan.

Its investment banking business is being scaled back. It will "deleverage to build a more focused investment bank, with a planned gross leverage reduction of approximately €200 billion and redeployment of €50 billion to €70 billion in relationship-driven businesses," the bank said.

Deutsche also spelled out five "medium-term financial ambitions", including increasing the leverage ratio to at least five per cent and "stabilising" the Basel III common equity tier one ratio at 11 per cent.