German banking major Deutsche Bank AG (DB) on Tuesday reported progress on its transformation strategy, in line with or ahead of its objectives. The bank further reaffirmed its 2019, 2020 and 2022 cost targets.
The company expects adjusted costs, before transformation-related charges and the impact of the Global Prime Finance transfer to BNP Paribas, to be 21.5 billion euros in the full year 2019. The company has a cost target of 19.5 billion euros in 2020 and of 17 billion euros in 2022, a reduction of nearly 6 billion euros relative to 2018.
Further, Deutsche Bank maintained a Common Equity Tier 1 or CET 1 ratio of at least 12.5% at all times throughout its transformation. Asset reduction in the Capital Release Unit is running ahead of plan. For the end of 2019, the bank currently anticipates it will report a CET 1 ratio of above 13%.
The company also reaffirmed its target of an 8% post-tax return on tangible equity or RoTE in 2022.
For the Core Bank, which excludes the Capital Release Unit, Deutsche Bank announced a post-tax RoTE target of above 9% in 2022.
Christian Sewing, Chief Executive Officer, said, "In the past few months we have made significant progress on every dimension of our strategic transformation. We are in line with our plan and even ahead in several areas."