A new round of cost-cutting is being launched by Germany's largest bank, Deutsche Bank, because of the downturn in the world's financial markets.

We have to ask ourselves what is more important - market share or profitability... I think it is profitability

Josef Ackermann, Deutsche Bank

Josef Ackermann, the bank's new chief executive, said the pressure to reduce costs and improve efficiency could mean more job cuts, on top of the 9,200 already announced.

Some divisions of the bank could be outsourced - sold on to specialist contractors - while continuing to work for Deutsche Bank and its customers.

Mr Ackermann said the bank was examining this option "very closely".

And despite the abysmal state of the world's stock markets, Deutsche Bank will press on with plans to sell its vast shareholdings in Germany's corporate giants, including DaimlerChrysler, Continental and Axel Springer.

Election worries

Recent changes in tax laws have made it easier for Germany's banks and other investors to sell off their notoriously extensive cross-holdings.

Disposing of surplus corporate assets has been given added urgency because of Germany's general election in September.

The conservative opposition parties have said they may abolish the new tax break on corporate capital gains tax, and their current lead in the opinion polls is making investors with sell-off plans jittery.

Mr Ackermann said Deutsche Bank had to move fast or risk missing this window of opportunity.

No more expansion

Deutsche Bank spent most of the 1990s trying to transform itself from Germany's premier bank into a global financial player.

Ackermann says cutting costs is the only option

But despite spectacular acquisitions and mergers - such as the one with Bankers' Trust in the United States - the bank has not made it into the top tier of global banking groups.

Mr Ackermann now says the costly expansion of its banking platform is over: "We have to ask ourselves what is more important - market share or profitability.

"I think it is profitability."

Key to Mr Ackermann's strategy is a cost-cutting target set at 2bn euros (�1.3bn; $2bn).

To achieve it, "further job cuts cannot be excluded", he now believes.

German media reports have suggested that as many as 15,000-20,000 jobs could disappear.

Driving up the share price

The main worry for Deutsche Bank's new boss, though, is the bank's share price, which in recent months has been lingering at approximately 70 euros.

Deutsche Bank could cut yet more jobs at its branches

This is well down from its peak of more than 100 euros, but at least better than last September's trough of 43.20 euros.

Mr Ackermann said his central mission was to drive the bank's market value higher, to ensure it "can play a role in European or global consolidation that will take place in the foreseeable future".

Boosting the share price could lift Deutsche Bank into the top 10 of global banking - and protect it from takeover bids.

No Lloyds TSB merger

Mr Ackermann said it was unlikely that Deutsche would be taken over, but refused to rule it out.

And he confirmed last year's market rumours that he had talked to Britain's Lloyds TSB - one of the "big four" of UK banking - about a merger.

The talks broke down, Mr Ackermann said, when it became clear that Deutsche Bank shareholders would end up with a minority stake in the combined venture.

Deutsche Bank has more than 95,000 employees, operates in just over 70 countries worldwide, and claims to have more than 12 million customers.