Deutsche Set To Discard Wealth Units

Deutsche's first quarter results revealed a $77m pre-tax loss for its private client and asset management division and it has already announced plans for a major overall of this business.

It is thought that the bank will now seek further cost reductions in the division and accelerate the sale of non-core assets.

Deutsche is seen as vulnerable to takeover by Citigroup and incoming chairman Josef Ackermann is intent on doubling the Deutsche shareprice to ward off the threat of a hostile bid. He intends to push through a radical cost-cutting exercise and is believed to want to reduce the bank's cost/income ration down from the present 90.5% to 65%.