Michael Cohrs, head of global banking at Deutsche Bank, acknowledged that managing the risk of its unfunded leveraged finance commitments had been a problem and that the firm is selectively selling down loans after “unacceptable” investment banking results in the first quarter.

In corporate banking and securities, Deutsche reported a loss of €1.6bn ($2.5bn) for the first quarter of this year due to writedowns of leveraged loans and loan commitments and commercial real estate and residential mortgage-backed securities.