Deutsche Bank Should Scale Back U.S. Business, JPMorgan Says

Deutsche Bank AG needs to scale back its U.S. operations and focus on serving European companies to unlock capital and improve returns, according to analysts at JPMorgan Chase & Co.

The U.S. business “consumes material balance sheet resources” while suffering from “persistently low profitability,” Kian Abouhossein and Amit Ranjan wrote in a note to clients on Wednesday. The alternative would be to do nothing and hope for a better environment, which would leave the bank at risk of a “confidence issue” should markets go the other way, they said.