Address

Precise Investors

Sunday, July 25, 2021
Trading

Deutsche Bank to shed 3,400 clients

Germany’s biggest bank has cut ties with clients that cost more to service than they bring in returns as part of efforts to boost its capital.

Deutsche Bank Chief Executive John Cryan is stepping up the restructuring process as the bank finalizes talks with U.S. justice authorities over a multi-billion dollar fine related to U.S. mortgages.

At a strategy presentation in October 2015, Cryan had said that Deutsche Bank would reduce the number of clients in its Global Markets and Corporate & Investment Banking divisions by about 50 per cent.

“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 per cent of the investment bank’s income came from 30 per cent 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.

Important:

The articles are for information purposes only and Precise Investors shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.

Precise Investors does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

Leave a Reply

6 + thirteen =