Deutsche Bank CEO Highlights Need for Improved Capital Allocation and Profitability

Deutsche Bank CEO emphasizes the need for improved capital allocation and profitability. The bank's income breakdown includes retail banking and private banking (35.1%), investment, finance, and market banking (35.6%), private banking (31.2%), corporate banking (24.9%), and asset management (8.8%). At the end of 2024, Deutsche Bank managed EUR 666.3 billion in current deposits and EUR 478.9 billion in current loans through its global network of 1,307 branches.

In a recent statement, Deutsche Bank CEO Christian Sewing emphasized the need for enhanced capital allocation and profitability strategies to bolster the bank's performance. The CEO highlighted the bank's diverse income streams, including retail banking and private banking (35.1%), investment, finance, and market banking (35.6%), private banking (31.2%), corporate banking (24.9%), and asset management (8.8%) [1].

At the end of 2024, Deutsche Bank managed EUR 666.3 billion in current deposits and EUR 478.9 billion in current loans, distributed through a global network of 1,307 branches [1]. The bank's focus on improving profitability and capital allocation reflects its strategy to navigate the challenging economic environment and maintain its competitive edge.

Sewing's comments come amidst growing concerns about Germany's economic outlook. The country's GDP contracted by 0.3% in the second quarter of 2025, largely due to weak manufacturing performance and the impact of U.S. tariffs on German exports [2]. Chancellor Friedrich Merz has pledged to address the crisis through a series of reforms, signaling a renewed focus on growth-oriented policies [3].

The recent downturn has exacerbated public concerns, with voters increasingly skeptical of the government’s ability to manage economic challenges. Reports of mass layoffs and high inflation have fueled impatience with the pace of change [5]. The political climate is now testing Merz’s leadership as he seeks to balance fiscal discipline with the urgent need for economic revival [6].

Despite the government’s defensive stance on its economic policy, the data leaves little room for optimism. Germany’s economic performance is now in a “danger zone,” with growth stalling and the risk of a technical recession looming [6]. The credibility of the government’s reform agenda will be measured not only by its scale but by its ability to deliver tangible results in the near term.

References:
[1] https://www.ainvest.com/news/deutsche-bank-insights-germany-gdp-breaking-income-activity-2508/
[2] https://www.ainvest.com/news/deutsche-bank-insights-germany-gdp-breaking-income-activity-2508/
[3] https://www.bloomberg.com/news/articles/2025-08-22/german-economy-shrank-more-than-estimated-in-second-quarter
[4] https://www.cryptopolitan.com/germany-defends-economic-policy/
[5] https://www.wsj.com/world/europe/can-germanys-merz-revive-the-economy-voters-are-running-out-of-patience-651902fc?gaa_at=eafs&gaa_n=ASWzDAhjqOGX1GNd4ZlZmiJyvm_j64tSJdls792C1UaY2ZSposYCjkwSPfo0&gaa_sig=DBX8LtEg2ptbxOYFPHpfMiSSMCJJtP9p9nj3xh-mm5dba-YvKidp_HlTTemShYRctOSIjPiI9w3Fy0GsYEuYdg%3D%3D&gaa_ts=68a97aed
[6] https://fxmag.com/stocks/germany-back-in-the-danger-zone-growth-stalls-amid-tariffs-and-stagnation