Deutsche Bank cuts ties
with 3,400 clients in trading business
Send a link to a friend
[December 03, 2016]
By Arno Schuetze
FRANKFURT (Reuters) -
Deutsche Bank's Global Markets division will cut ties
with about 3,400 clients in its debt and equities sales
activities, the bank said on Friday. Deutsche Bank will
immediately cease debt sales services to some financial
institutions and hedge funds as well as equity sales
activities, the execution of equities trading orders and
equity structuring activities for some clients, a
spokesman said, citing an internal memo. |
![](../images/120316pics/busine87.jpg)
A statue is pictured next to the logo of Germany's
Deutsche Bank in Frankfurt, Germany September 30, 2016.
REUTERS/Kai Pfaffenbach/File Photo |
Germany's biggest bank is looking to shed clients that cost more
to service than they bring in in returns as part of efforts to
turn around its business and boost its capital.
Deutsche Bank Chief Executive John Cryan is stepping up the
restructuring process as the bank finalises talks with U.S.
justice authorities over a multi-billion dollar fine related to
U.S. mortgages.
In October 2015, Cryan had said at a strategy presentation that
Deutsche Bank would reduce the number of clients in its Global
Markets and Corporate & Investment Banking divisions by about 50
percent.
"We expect to off-board about half of the current list of
clients as the economic returns in these relationships are
inadequate to us," he said at the time. He also said that 80
percent of the investment bank's income came from 30 percent of
clients.
Deutsche Bank is still among the top 5 trading houses in debt
and top 10 in equities globally, according to research firm
Coalition. But the bank has lost market share as it retreats
from a period of expansion, in which it had focused mainly on
revenue growth and less on profitability.
[© 2016 Thomson Reuters. All rights
reserved.] Copyright 2016 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
![](column_spacer.png) |
|
|