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Deutsche Bank Plan Fails to Convince Analysts as Shares Drop

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How Deutsche Bank Job Cuts Impact the Banking Employment Landscape
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Deutsche Bank AG shares erased earlier gains of as much as 4.4% and fell 5.7% as of 3 p.m. CET after the German lender unveiled plans to restructure its business. Some analysts said challenges for the bank remain and noted the new profitability targets may be too ambitious.

“We would be selling into any strength as its strategy has significant execution risk and leaves it with little room for error on capital,” Berenberg analyst Eoin Mullany wrote in a note today. The restructure “does not change the fact that DBK is exposed to an industry in structural decline (investment banking) and one in which the marginal pricing is to be break-even (German retail).”