Deutsche Bank shakes up investment bank to regain lost ground

Wed Oct 12, 2016 5:34am EDT
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By Pamela Barbaglia and Sophie Sassard

LONDON (Reuters) - (In this October 11 story Deutsche Bank says it has changed the reporting lines of Evans Haji-Touma and Ashok Pandit referred to in last paragraph but has corrected an earlier statement that said they have been promoted to global co-heads of sovereign wealth funds, pension funds and family offices)

Deutsche Bank (DBKGn.DE: Quote) promoted a group of its senior investment bankers on Tuesday, part of an internal reshuffle as it tries to boost its flagging performance in corporate mergers and acquisitions and capital markets.

The German bank, threatened with a multi-billion-dollar fine from U.S. regulators, saw its global investment banking fees fall nearly 30 percent to $2 billion in the first nine months of the year, slipping behind its nearest European rival Barclays (BARC.L: Quote) to seventh position in the investment banking league tables, according to Thomson Reuters data.

But Alasdair Warren, the bank's head of corporate and investment banking for Europe, Middle East and Africa (EMEA) told Reuters he's confident the German lender can recover some lost ground over the next 12 months, particularly in equity capital markets (ECM), and he is making a series of changes to the investment bank's structure.

"We're confident that we can rise back up in the ECM league tables," said Warren, a former co-head of the global private equity advisory business at Goldman Sachs, who joined Deutsche in May this year.

Deutsche Bank has seen fees from global equity products take the biggest hit in the first nine months of the year with a 45 percent decline to $328 million. In the same period its global M&A fees went down 31 percent while fees attached to global loans and bonds slipped 36 percent and 14 percent, respectively.

The bank's share price has almost halved this year, prompting speculation that it could lose some of its top investment bankers.   Continued...

Window cleaners are working on the facade of the headquarters of Germany's Deutsche Bank in Frankfurt, Germany, October 5, 2016.   REUTERS/Kai Pfaffenbach