Germany's Deutsche Bank AG plans to merge DB Privat- und Firmenkundenbank AG, the legal entity that runs its domestic retail banking operations, into the group structure, the Financial Times reported, citing people familiar with the matter.
The move is said to be part of the lender's aim of slashing about €100 million in annual costs.
The bank, which is under investor pressure to show signs of progress in executing its radical €7.4-billion restructuring, is expected to announce the decision at a capital markets day slated for Dec. 10.
Deutsche Bank Privat- und Firmenkundenbank, or PFK, held a fifth of the group's total assets and has some 34,000 staff at 2018-end. Under its structure, which dates back two decades, PFK has a separate banking license, its own supervisory and executive boards, and its own risk and control functions, resulting in duplication and internal red tape, sources told the FT.
The retail banking operations is part of Deutsche's private bank, which is at the center of CEO Christian Sewing's strategy to revive profits and cut its reliance on declining investment banking revenue. Scrapping PFK will add roughly 7% to the private bank's cost-cutting target of €1.4 billion by 2022, the report noted.