Deutsche Bank to add 100 jobs for eq­ui­ties

The Pak Banker - - FRONT PAGE -

PARIS: Deutsche Bank, Europe's big­gest in­vest­ment bank, will hire about 100 peo­ple across eq­ui­ties trad­ing as it seeks to ex­pand the busi­ness and re­duce re­liance on desks deal­ing in bonds, ac­cord­ing to a per­son with knowl­edge of the mat­ter. The hires will in­clude roles in re­search, sales, tech­nol­ogy and prime ser­vices, the busi­ness that caters to hedge funds, ac­cord­ing to the per­son, who re­quested not to be iden­ti­fied as the in­for­ma­tion is pri­vate. Ali­son Moody, a Lon­don-based spokes­woman for Deutsche Bank, de­clined to com­ment.

Deutsche Bank co-Chief Ex­ec­u­tive Of­fi­cer John Cryan is elim­i­nat­ing thou­sands of jobs and sell­ing as­sets to bol­ster cap­i­tal buf­fers and profitabil­ity af­ter the lender was bat­tered by a se­ries of mis­con­duct fines, many of which orig­i­nated in the fixed-in­come unit. Garth Ritchie, who Cryan placed in charge of the mar­kets divi­sion last year, is shrink­ing cap­i­tal-in­ten­sive bond-trad­ing busi­nesses and re­al­lo­cat­ing re­sources to stock­trad­ing.

Rev­enue at the firm's stock-trad­ing unit climbed 6 per­cent to 3.1 bil­lion euros ($3.5 bil­lion) in 2015, com­pany fil­ings show. The Frank­furt-based lender said in Oc­to­ber that in­vest­ments in the prime bro­ker­age and other trad­ing and in­vest­ment bank­ing busi­nesses would add about 600 mil­lion euros of rev­enue through 2018.9

When pre­sent­ing earn­ings to an­a­lysts in Jan­uary, Cryan said that he is "de­ter­mined to rein­vest to hire peo­ple" and re­store the bank's mar­ket po­si­tion in cash eq­ui­ties.

"Cash eq­uity is a place we should be," he said at the time. "And if we're go­ing to be there, we need to be there with full force and ef­fect."

The ten big­gest in­vest­ment banks in the world em­ploy an av­er­age of about 1,900 traders and sales­peo­ple each in eq­ui­ties units, re­search firm Coali­tion Devel­op­ment Ltd. wrote last month. Deutsche Bank was the sev­enth-big­gest trader of eq­ui­ties by rev­enue in 2015, ac­cord­ing to Bloomberg In­tel­li­gence. Reuters re­ported the hires ear­lier on Thurs­day.

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