Deutsche Bank
said today it will cut about 500 jobs from its corporate banking and
securities division, or just over 3 per cent of the workforce in that
segment, after it warned of a significant drop in volumes and
revenues in this division in recent weeks as Greek debt fears hit
markets.

Germany’s
largest bank, and also one of the largest wealth managers in the
eurozone, said its pre-tax profit target of €10 billion (around
$13.2 billion) from its core businesses was “no longer achievable
for 2011”. However, Deutsche Bank expects to make a profit in the
third quarter and that private client, asset management and global
transaction banking will deliver their “best pre-tax profits ever,”
according to a statement.

As far as the
CB&S division was concerned, Deutsche said: “The third quarter
2011 result will come in significantly lower than expected for the
CB&S business division.”

A total of
15,400 work in the CB&S division, a spokesperson for the bank
told this publication. The job cuts will come primarily outside
Germany, the bank said, without elaborating on details.

“Deutsche
Bank will consider additional cost controls beyond those already
implemented as part of the recalibration of the Corporate &
Investment Bank. This will lead to a reduction in headcount by around
500 positions in CB&S (corporate banking and securities) during
Q4 2011 and Q1 2012, primarily outside Germany,” it said.

The
announcement comes on the same morning that UBS, which has been hit
by a $2.3 billion loss caused by unauthorized trading at its
investment bank, said it expected to post a “modest”
third-quarter profit and continued positive net inflows at its wealth
management arm.

Deutsche said
it expects to log impairment charges on Greek sovereign debt of
around €250 million, compared with €155 million in the second
quarter, which the bank continues to mark to market.