Deutsche Bank sees further savings potential through the use of AI.
“In November we announced that we wanted to achieve operational efficiencies of around 2 billion euros,” said CEO Christian Sewing, according to his speech manuscript published on Tuesday for the general meeting, which will take place in person in Frankfurt on Thursday next week. “And after the first quarter of this year, we see even greater potential.” He referred to technological progress. “Especially in the area of artificial intelligence, the pace is significantly exceeding expectations.”
A more efficient operating model, along with growth in selected business areas and capital discipline, is one of three levers with which Sewing wants to increase the return on equity to at least 13 percent by 2028, as he confirmed in his speech. “A return on equity of 13 percent is the lower limit for us – we are confident of significantly more,” said Sewing. The goals were deliberately set conservatively.
Sewing confirmed the outlook for the current year. The bank continues to expect to increase revenues this year to around 33 billion euros from 32.1 billion last year.
The risk provisions, which were increased in the first quarter, are expected to normalize again over the course of the year. “We have also consciously created a little more buffer by booking additional risk provisions in view of the macroeconomic risks,” said Sewing and spoke of the high quality of the loan book. “Our portfolios are developing as expected – even in areas that the market sees critically. In Private Credit, for example, we still haven’t lost a cent.”
The Deutsche Bank share was temporarily trading 1.56 percent higher at 27.33 euros via XETRA.
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