| DUESSELDORF, Germany
DUESSELDORF, Germany Jan 13 Deutsche Bank
plans to put its home German market and corporate
customers at the centre of its plans when it spells out more of
its future strategy over the next few months, the lender's
finance chief said on Friday.
Marcus Schenck's remarks make clear that the bank feels it
is finally able to focus on reshaping its core business, after
last month agreeing a $7.2 billion penalty over the sale of U.S.
toxic mortgage debt -- its largest in a long line of legal
"We want to go on the offensive," Chief Financial Officer
Schenck told a gathering of customers, striking an upbeat tone
after months of uncertainty over the fine that had prompted
fears that Germany's largest bank would need a state bailout.
"We want to score goals," he said, expressing relief that
the fine had now been agreed. The penalty was lower than the $14
billion at first suggested by U.S. authorities.
The original organisational change, launched in October 2015
by Chief Executive John Cryan, aimed to cut costs by reducing g
staff numbers and overheads and selling off some non-core
But towards the end of last year, staff numbers had barely
changed from around 100,000 and there was little clarity on what
the bank's long-term business model would look like, increasing
pressure on management to speed up its turnaround.
Even Christine Lagarde, the head of the International
Monetary Fund, had taken the unusual step of questioning the
bank's business model, urging it to "decide what size it wants
There have, however, already been some indications about the
direction the bank will take.
In November, two people familiar with the matter said that
Deutsche Bank was looking to cut its loan securitization
business further starting with repackaged U.S. mortgages.
As well as rolling back the repackaging and resale of U.S.
mortgages, European car loan securitization and other areas may
also be cut, the people said.
Such a move would mark a retreat from a core business that
helped Deutsche become one of the most dominant investment banks
in the world before the financial crash.
In paring back its presence, Deutsche would be responding
not only to tighter regulation but also tougher market
(Writing By John O'Donnell; Editing by Keith Weir)