In a letter sent to the bank’s employees Monday morning, Sewing said: “We’ll thoroughly analyze how we want to position this (investment banking) pillar of our bank in a difficult market environment.”
“The priority is to leverage our strengths and to allocate our investments accordingly. And at the same time we will look to free up capacity for growth by pulling back from those areas where we are not sufficiently profitable,” Sewing told employees.
Octavio Marenzi, the CEO of capital markets management consultancy Opimas, told CNBC via email that “we can expect a much stronger emphasis on the domestic German market, with a focus on commercial and retail banking, and wealth management.”
The move is likely to “hit Deutsche Bank’s London presence particularly hard, where the bulk of its investment banking activity is based,” Marenzi added.