Deutsche Bank and Barclays: Trans-Atlantic Drift

The cuts will result in job losses and include a scaling-back of its business with hedge funds

The cuts will mainly fall in USA and Asia, Deutsche Bank said.

New CEO Christian Sewing also announced fresh restructure details in which the bank will reduce its investment bank commitments to clients outside of Europe.

Now, more than ever, is the time to take action, the bank's chief financial officer said Thursday. The manager commented in the note informing the markets of the change of course adding: "there is no time to waste because the current return for our shareholders is not acceptable ". He didn't provide figures. Net revenue for the quarter was down 5 percent year-on-year to 6.98 billion euros. Deutsche Bank told that the drop was less bad if adjusted for several one-off effects and a weaker dollar. Barclays Plc, its biggest European peer, beat trading expectations for a second straight quarter, with revenue from markets rising 8 per cent, the bank said Thursday.

Among 2 analysts covering Deutsche Bank AG Common Stock (NYSE:DB), 0 have Buy rating, 1 Sell and 1 Hold. The stock is the third-worst performer among large European banks over the past five years. About 1.21 million shares traded.

Deutsche Bank is retreating from Wall Street and making "painful" jobs cuts in its investment bank after reporting a slump in profits.

Deutsche said on Thursday: "The bank will scale back activities in USA rates sales and trading, shrinking the balance sheet, leverage exposure and repo financing while remaining committed to its European business, which given its scale and relevance to our client base generates more attractive returns". In U.S. rates sales and trading, it plans to shrink the balance sheet, leverage exposure and repo financing. "Therefore we have to act decisively and to adjust our strategy".

Deutsche's investment bank has traditionally been strong in the fixed income markets, with rates trading a particular area of strength, but it has struggled to gain traction in the US.

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Paul Achleitner, now Deutsche Bank's supervisory board chairman, advised it on the purchase while at Goldman Sachs Group Inc. Deutsche Bank presently has a consensus rating of Hold and an average price target of $17.41.

But Cryan's lack of progress was a sticking point with Deutsche's management board, and Sewing reiterated that the bank would now step up the pace of change.

Marcus Schenck, the former co-head of investment banking who had been a strong internal contender to replace Cryan, left amid the recent management shake-up.

Deutsche Bank will make "significant" job cuts as it scales back its corporate and investment banking operations, Germany's biggest lender has said. Sewing has called the target "non-negotiable" in a memo to staff sent earlier in April.

Investors have been calling for such moves amid signs that Deutsche Bank's strategy was failing.

Deutsche Bank said today that it plans to focus its consumer bank on growing markets like Italy and Spain while in wealth management, the bank will look to grow in Germany and in worldwide markets, Deutsche Bank said. Its German home market trails the U.S. and U.K.in retail- and investment-banking profitability, and compared to its big Swiss rivals, Deutsche Bank lacks scale in private banking and wealth management.

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