Still a lot of work on costs at Deutsche

"It's all about costs," says a senior Deutsche Bank (DB -0.7%) official close to the bank's plans for investment banking. "We're not counting on any kind of uptick" from revenues.

Is the statement at odds with Deutsche's pitch to investors (amid a planned $11B equity raise) billing itself as the last many standing in European investment banking - and ready to rake in business - as rivals like Barclays and UBS scale back their operations?

As for cost cuts, the record of management is a good one, with €2.3B in reductions since co-CEOs Anshu Jain and Juergen Fitschen took over a couple of years ago. But another €3.3B is needed by year-end 2015 to meet a 12% ROE goal, and Morgan Stanley isn't so sure it will be met, seeing ROE of just 8% by 2016.

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