Deutsche Bank should consider ditching its investment banking business, analysts suggested on Monday.

The troubled German lender has seen in share price sink in 2016 due to concerns over its financial health.

It’s now facing a $14bn fine over in the US for mis-selling mortgage-backed bonds before the financial crisis of 2008.

Asset sales, capital raises and government support have all been put forward as options to shore up Europe’s biggest investment bank.

On Monday, analysts BNP Paribas Exane questioned whether it makes sense for the firm to be last man standing in EU investment banking.

“In our view, the key issues relate to the capital base, the size of the balance sheet, and the low levels of underlying  profitability,” said Amit Goel, investment banking research analyst at the French broker.

"Over time we see the group’s historical competitive advantages over peers (lower funding costs, more leverage) steadily diminishing, putting the shares under ongoing pressure.

“There is no quick fix, but we think that if the group continues on the current strategy, current episodes may repeat, even if the group successfully navigates the current concerns.”

Goel added that rather than thinking about whether asset management or other parts of the group could be sold,  why not think about exiting the investment banking?

“Clearly this would be very expensive and take a long time, but ultimately it could put the group on a more solid footing," he said.

"It’s a tough decision to make, and it would take several years to execute but based on our analysis, the costs of running off the investment bank could offset the potential capital released from the reduction in capital demand, and the group could end up reporting net losses for several years."

Nevertheless, Goel added that the remaining business could show improving profitability . 

"Given the costs, time and risk involved, running off the investment bank doesn’t necessarily create value for  shareholders in the short  term, and would not necessarily make us more positive at the current share price, but could be a positive step in the long run," the analyst concluded.