Deutsche Bank to cut another 100 jobs

http://www.guardian.co.uk/business/2012/oct/30/deutsche-bank-cut-jobs

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Deutsche Bank is to cut 100 more jobs than initially planned from its investment banking arm, despite the division helping raise pre-tax profits in the third quarter.

The bank will shed 2,000 roles and said on Tuesday it was on track to complete the layoffs by the end of the year.

It comes as the Swiss bank UBS announced plans to reduce its headcount from 64,000 to 54,000 by 2015. Both banks have large offices in London. Deutsche Bank employs more than 8,500 staff in the UK, with 7,000 of those in the capital.

In the third quarter, net revenues rose 18% to €8.7bn (£7bn), mostly reflecting improved market conditions and increased market activity. Investment banking revenues surged 65% to €4.3bn but were offset by higher costs for streamlining the business and from credit write-offs. Net income slipped nearly 3% to €755m, but still beat expectations.

The bank booked €276m in restructuring expenses in connection with its cuts programme and €289m for litigation, although it did not give details. The Frankfurt-based bank faces regulatory action after admitting complicity in the Libor interest rate-fixing scandal along with Barclays and other major banks.

Third-quarter pre-tax profit rose 20% to €1.1bn, in line with analyst expectations. The shares, listed in Frankfurt, soared more than 3.4%.

Co-chief executives Anshu Jain, formerly head of investment banking, and Jürgen Fitschen, said: "In the third quarter, we delivered a strong operating result which was supported by an improvement in market conditions" but they warned that in the near term the economic environment remains uncertain.