Deutsche Bank (DBK.DE) will increasingly rely on its investment bank to help offset ?1.2bn (£1.2bn, $1.5bn) in new headwinds from negative interest rates as it charts its growth plans through 2022, according to Christian Sewing, the bank's chief executive officer in an interview with Bloomberg on Wednesday.
A trading rally had lifted its revenue this year, which continued into the fourth quarter, making it an important part of Sewing's turnaround plan for Germany's largest lender.
Sewing also increased his outlook for the entire business, saying it would generate ?8.5bn of revenue in two years' time, which is ?600m more than was previously targeted.
Negative interest rates undermine a bank's profit margin, and such an environment in Europe forced Sewing to cut forecasts for the corporate bank, which was key to his earlier strategy. He also had to lower the group revenue target slightly to ?24.4bn from ?24.5bn.
READ MORE: Bank of England asks banks how ready they are for negative interest rates
In June, the International Monetary Fund (IMF) warned that the world economy was set to take a hit of more than $12tn (£9tn) by the end of 2021 as it continued to face the destabilising impact of COVID-19.
In Europe, negative rates were widely pursued across Europe following the 2008 financial crash. The deposit rate at the European Central Bank remains negative. In October, the Bank of England also asked local entities if they were ready for negative rates.
Deutsche has also faced a string of problems following several failed turnaround efforts. Sewing, who is a former corporate banker, last year announced Deutsche Bank's biggest restructuring in at least two decades, whereby it would exit equities trading. Instead, it would focus on businesses where the bank was most competitive. He has already announced the bank would cut 18,000 jobs, or a fifth of the workforce.
WATCH: What are negative interest rates?