Skip to content
Wealth
Investing

Deutsche Bank’s Push to Tighten Controls Is Quietly Boosting Costs

  • Lender boosts spending on controls after regulatory criticism
  • Bank’s leadership has long struggled to fix the issue
The headquarters of Deutsche Bank AG in Frankfurt, Germany.

The headquarters of Deutsche Bank AG in Frankfurt, Germany.

Photographer: Alex Kraus/Bloomberg

Deutsche Bank AG’s rising costs were in focus again last month, when the lender used results to warn that a key profitability target is getting harder to reach. That came a year after Christian Sewing scrapped various expense targets, blaming the move on factors including investments for growth and higher German deposit levies. 

The bank has only made passing references to another big driver: it’s spending an additional several hundreds of millions euros on Sewing’s multi-year campaign to fill the persistent holes in the German lender’s controls, people familiar with the matter said.