Deutsche Bank shares tumble as deal doubts mount

Credit: Reuters Studio
Published on July 9, 2019 - Duration: 01:09s

Deutsche Bank shares tumble as deal doubts mount

Shares in Deutsche Bank tumbled for a second day on Tuesday.

Analysts say there are growing doubts over a massive restructuring plan announced at the weekend.

Julian Satterthwaite reports.

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Deutsche Bank shares tumble as deal doubts mount

As Deutsche Bank workers clear their desks, the bank's shares are taking another tumble.

Down around four percent in morning trade Tuesday (July 9).

And a total ten percent since the bank announced a huge restructuring on Sunday (July 7).

Chief executive Christian Sewing is on a week-long roadshow to sell the plan.

It involves around 18,000 job cuts - about one-in-five Deutsche workers.

Tens of billions of dollars worth of assets also up for sale.

Shares had initially risen on news of the plan.

But it seems doubts soon set in.

Most analysts say Sewing is right to slash the bank's trading desks.

But one of Deutsche's top 25 shareholders told Reuters there are worries about execution.

They doubt that the lender can maintain earnings while cutting costs.

Deutsche plans to focus on corporate banking and wealth management.

Profitable areas - but also ones subject to mounting competition.

The growing presence of U.S. rivals in its German home market another source of worry.

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