Deutsche Bank may shrink trading arms as a profitability booster

Frankfurt

DEUTSCHE Bank AG, which runs Europe's biggest investment bank, is looking at shrinking its trading businesses as it reviews three options to boost the firm's profitability, according to a person familiar with the matter.

To help lift returns, the bank is considering paring its interest-rate trading business and the prime finance activities that cater to hedge funds, said the person, who asked not to be identified speaking about private discussions. One option would shrink the investment bank by almost a fifth, the person said.