Deutsche Bank has reported a net income of €120m for the first quarter of 2018, a slump of 79% compared to €575m a year ago.

The group’s pre-tax income for the quarter was €432, down 51% from €878m reported last year.

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Compared to the previous year, the group’s noninterest expenses rose 2% to €6.45bn and provision for credit losses decreased 34% to €88m.

The Private & Commercial Bank (PCB) unit of Deutsche Bank reported a pre-tax income of €322m for the first quarter of 2018, down 25% from €430m in the same period last year.

The unit’s quarterly net revenues dropped 2% to €2.64bn from €2.7bn. Noninterest expenses at the division rose 1% year-on-year to €2.23bn.

Deutsche Asset Management posted a pre-tax income of €72m for the first quarter of 2018, a decrease of 61% from €185m in the corresponding quarter of 2017. Net revenues at the unit slid 10% year-on-year to €545m.

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Deutsche Bank CEO Christian Sewing said: “We are on a good track both in the DWS asset management business and in our Private & Commercial Bank, although we need to substantially improve profitability in both. Our Corporate & Investment Bank is also doing well in some areas and held or gained market share in certain areas. However, we are not strong enough in other areas of this business. Therefore we have to act decisively and to adjust our strategy. There is no time to lose as the current returns for our shareholders are not acceptable.”

Meanwhile, the bank also announced plans to lower its headcount, mainly in its corporate and investment banking units.

“These cutbacks will be painful, but they are unfortunately unavoidable if we want to be sustainably profitable in the best interests of our bank, our clients and our investors,” Sewing stated.

The bank also intends to reduce its commitment to the US and Asia, while refocusing on European customers.

It plans to scale back US rates business and instead invest in its European rates business, as well as review its global equities business with the expectation of eventually reducing the platform.