Deutsche Bank Planning to Close Most Asia Equity Businesses, up up up lorry! lorry up up up! Chow Ang Moh banks

[democracy my butt]

https://www.bloomberg.com/news/arti...-to-close-most-asia-pacific-equity-businesses

business
Deutsche Bank Planning to Close Most Asia Equity Businesses
By
Cathy Chan
,
Steven Arons
, and
Nicholas Comfort

July 7, 2019, 7:19 PM GMT+8 Updated on July 7, 2019, 8:04 PM GMT+8

• Lender relied on region for 12% of its total revenue last year
• Bank said to plan dismissing half of equities staff in region

The International Commerce Centre (ICC) building, which houses the offices of Deutsche Bank AG, stands in Hong Kong, China, on July 7.
Photographer: Kyle Lam/Bloomberg
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DBK
DEUTSCHE BANK-RG
7.16
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+0.16+2.21%

Deutsche Bank is planning to shutter the majority of its equities business in the Asia-Pacific region as part of a restructuring to be announced as soon as Sunday, a person with knowledge of the matter said.


The Frankfurt-based lender expects to stop offering trading of cash equities, equities research and may no longer underwrite initial public offerings in the region, the person said, asking not to be identified as the matter is private.



As many as half the Asia equities staff will leave initially and the remainder later this year, the person said, adding that the final decision depends on the bank’s supervisory board meeting on Sunday. The lender may keep its margin lending business, the person said.



What’s a Bad Bank and How Can It Help Deutsche Bank?: QuickTake



Deutsche Bank’s supervisory board is convening to adopt a far-reaching plan presented by Chief Executive Officer Christian Sewing that’s built around dramatically shrinking and perhaps even shuttering equities trading outside Europe, people familiar with the matter have said. Peter Selman, the head of equities, is among executives said to be leaving the bank. Asia has been one of the bright spots for equity issuance revenue for Deutsche Bank.

Some employees at the bank’s offices in Hong Kong have already started packing their belongings, the person said. Deutsche Bank relied on Asia Pacific for 12% of its 25.3 billion euros of revenue last year. The corporate and investment bank unit, which includes equity trading, accounted for 2.51 billion euros of income from the region, company filings show. Deutsche Bank had about 20,000 employees in Asia Pacific, about a fifth of its combined workforce.
A Deutsche Bank spokesman declined to comment.
Deutsche Bank’s total revenue from trading stocks and related derivatives slumped 18% to 468 million euros in the first quarter from a year earlier as it experienced “challenging market conditions” and lost income after shrinking the business.
(Updates with Asia-Pacific earnings in fifth paragraph.)

 

[winnipegjets]

Does this mean we can kick out the thousands of Ah Nehs working in DB office here?

 

[democracy my butt]

Does this mean we can kick out the thousands of Ah Nehs working in DB office here?

To do that you ought to teach fucking idiot PAP that Ah Nehs are snakes. Will bite them dead in just a matter of time. Boeing is the lesson to learn.

 

[shittypore]

To do that you ought to teach fucking idiot PAP that Ah Nehs are snakes. Will bite them dead in just a matter of time. Boeing is the lesson to learn.

Pinky gets turn on with their smell and charm, his trusted are all Ah NEH.

 

[red amoeba]

How many high flying Singaporeans will be retrenched ?

 

[Pinkieslut]

Deutsche Bank posts Q2 loss, launches 7.4b euro overhaul

Deutsche Bank AG will exit its equities business and post a net loss of 2.8 billion euros (S$4.3 billion) in the second quarter as chief executive officer Christian Sewing seeks to boost profitability and shrink the German lender's once-mighty investment banking unit.
PHOTO: REUTERS

 

[Pinkieslut]

Deutsche Bank, a pillar of European finance, unveils radical restructuring. It will cut 18,000 jobs
By Julia Horowitz, CNN Business
Updated 1:49 PM EDT, Sun July 07, 2019

London(CNN Business)Deutsche Bank will cut 18,000 jobs and dramatically shrink its investment bank as part of a costly overhaul that marks a retreat from Wall Street after two decades of intense competition with American rivals.
The German bank said Sunday that it would shutter its equities sales and trading business, while creating a "bad bank" for €74 billion ($83 billion) in assets that eat up too much capital. The assets will be sold over the coming years.
"Today we have announced the most fundamental transformation of Deutsche Bank in decades," CEO Christian Sewing said in a statement, calling the moves a "restart."

 

[laksaboy]

Does this mean we can kick out the thousands of Ah Nehs working in DB office here?

They'll just be rehired by another bank, until they eventually get into trouble with the law.

 

[borom]

Actually I have reached a stage whereby I do not mind if all existing banks close down to be replaced by other payment systems or financial intermediaries.eg Visa, Paypal, ect2
Many already stopped providing services like remittances, safebox ,and wherever possible they outsource eg collection of cash from ATMs , HR , even IT ect2 and even forced you to do your own transactions on the internets or ATM's.
Since they mostly employ Ah Neh and even so called "locals" are Malaysian Chinese, they are no longer a provider of jobs to local born.
Will the high networth people keep on putting their monies in companies run by Indian Nationals ?

 

[laksaboy]

Will the high networth people keep on putting their monies in companies run by Indian Nationals ?

The high net worth people put their money in Cayman Islands etc.

 

[Pinkieslut]

Deutsche Bank axes whole teams in Asia-Pacific as 18,000 job cuts begin
By Paulina Duran and Sumeet Chatterjee

SYDNEY/HONG KONG, July 8 (Reuters) - Whole teams in Deutsche Bank's Asian operations were told their positions were gone on Monday, as the lender began axing 18,000 jobs globally in one of the biggest overhauls to an investment bank since the aftermath of the financial crisis.

The German bank launched the restructuring on Sunday in Europe, outlining a plan that will ultimately cost 7.4 billion euros ($8.31 billion) and see it dramatically scale back its investment bank - a major retreat after years of working to compete as a major force on Wall Street.

As part of the overhaul, the bank will scrap its global equities business and also cut some of its fixed income operations - an area traditionally regarded as one of its strengths.

While the bulk of the 18,000 job losses are widely expected to fall in Europe and the United States, on Monday the cuts also hit offices from Sydney to Hong Kong.

Deutsche Bank gave no geographic breakdown for the job cuts when it announced the plan on Sunday.

Bankers in Sydney seen leaving the lender's offices on Monday confirmed they worked for Deutsche Bank and were being laid off, but declined to give their names as they were due to return later to sign redundancy packages.

One person with knowledge of the bank's operations in Australia said its four-strong equity capital markets team was being let go, but that most of its mergers and acquisitions (M&A) team would not be immediately affected.

Deutsche had some 4,700 staff in Sydney, Tokyo, Hong Kong and Singapore, showed factsheets on its website.

Its investment banking team for the Asia-Pacific region numbered about 300 people before the cuts, and 10% to 15% will be laid off - almost all in its equity capital markets division, according to a senior Asia banker with direct knowledge of the plans.

In Hong Kong, a group of three upset-looking bank employees took a picture of themselves besides a large Deutsche Bank logo outside the lender's office, hugging each other before hailing a waiting taxi.

One Hong Kong-based equities trader who had been laid off said the mood was "pretty gloomy" as people were called individually to meetings.

"(There are a) couple of rounds of chats with HR and then they give you this packet and you are out of the building," the trader said.

Several workers were seen leaving the offices holding large envelopes with the bank's logo.

"If you have a job for me please let me know. But do not ask questions," said one who confirmed he was employed at Deutsche Bank, but declined to comment further.

A Deutsche Bank spokeswoman declined to comment on specific departures, saying the bank would be communicating directly with employees.

"We understand these changes affect people's lives profoundly and we will do whatever we can to be as responsible and sensitive as possible implementing these changes," she said.



RESTART

Chief Executive Officer Christian Sewing, who now aims to focus on the bank's more stable revenue streams, said on Sunday that it was the most fundamental transformation of the bank in decades. "This is a restart," he said.

"We are creating a bank that will be more profitable, leaner, more innovative and more resilient," he wrote to staff.

The bank will set up a so-called bad bank to wind-down unwanted assets, with a value of 74 billion euros of risk-weighted assets.

Sewing will now represent the investment bank on the board in a shift that illustrates the division's waning influence.

The CEO had flagged extensive restructuring in May when he promised shareholders "tough cutbacks" to the investment bank. This followed Deutsche's failure to agree a merger with rival Commerzbank AG.

 

[meepokboy]

Now all the ah-nehs at changi business park will be scrambling to move to other banks and continue on their carefree life with everything taken care of by the sg gov. song boh?

 

[blackmondy]

Winnie the Pooh is clamping down hard on money leaving China so this is totally expected and is just the beginning of the end.

 

[winnipegjets]

Winnie the Pooh is clamping down hard on money leaving China so this is totally expected and is just the beginning of the end.

When is black Monday? Looking forward to a global meltdown.

 

[Hypocrite-The]

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Deutsche Bank divests from its equity trading business, with job cuts starting in Sydney
UPDATED ABOUT AN HOUR AGO
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Two men in suits carrying bags in front of the Deutsche Bank in London.
PHOTO Hundreds of job cuts are expected at Deutsche Bank's London office.
REUTERS: SIMON DAWSON
Deutsche Bank has laid off staff from Sydney to New York as it begins a purge of 18,000 staff in a 7.4 billion euro ($11.9 billion) "reinvention" that will see the German bank divest from its investment operations, once touted as Europe's answer to Wall Street's giants.

Key points:
The German banking giant has lost money in four of the past five years
Employees in Sydney and Hong Kong's trading sectors are among the first to go
The news comes amid a global downturn in revenues from equities trading
Germany's largest lender said on Sunday (local time) it would scrap its global equities operations and cut some in fixed income in a retreat from a long-held ambition to make its struggling investment bank, with 38,000 staff, a force on Wall Street.

Shares in Deutsche Bank, which has almost 91,500 staff around the world, erased early gains and were down 6.1 per cent late yesterday, after its finance chief flagged "significant uncertainty" over breaking even in 2020. Its bonds also fell.

In London, where hundreds of job cuts are expected, chief executive Christian Sewing said he was "reinventing" the bank, which would have been in the red for four of the past five years after a series of damaging setbacks.

At Deutsche Bank's investment banking headquarters in London, where the bank employs 8,000 people, several said they were leaving for the last time, though few were keen to talk.

"I was terminated this morning. There was a very quick meeting and that was it," said one IT worker, who had been working on a project in the bank for more than two years.

A man in a suit carrying a green box walks in front of a sandstone wall that carries the Deutsche Bank logo in London.
PHOTO Staff outside Deutsche Bank's London offices were pictured exiting with their belongings.

REUTERS: SIMON DAWSON
The nearby Balls Brothers pub was filling up with now former Deutsche Bank staff.

At Deutsche Bank's Wall Street office, the bank's cafeteria was closed for meetings between management and staff affected by the cuts and hundreds of workers were told their jobs were being axed, sources familiar with the matter told Reuters.

Bankers seen leaving Deutsche Bank's Sydney office also said they had been laid off but declined to be identified as they were due to return later to sign redundancy packages.

German giant to create 'bad bank' to divest from assets
A man in a navy suit and tie is pictured close up with his mouth open in front of a blue slash — the Deutsche Bank logo.
PHOTO Deutsche Bank CEO Christian Sewing wants the bank to focus on more stable forms of revenue.

AP: MICHAEL PROBST, FILE
JP Morgan analysts called the plan "bold and for the first time not half-baked" but questioned the credibility of execution, revenue growth and employee motivation.

Ratings agency Moody's said there were "significant challenges" to executing the plan swiftly and it would keep its negative outlook on Deutsche Bank.

"It's a risky manoeuvre but, if it succeeds, it has the potential to bring the bank back on course," a person close to one of the top 10 biggest shareholders said.
How stable is Deutsche Bank?
How stable is Deutsche Bank?
In 2016, investors started to flee Germany's biggest bank amid speculation that it needed assistance from the German Government. Here's how that happened.
Founded in 1870, Deutsche Bank has long been a major source of finance and advice for German companies seeking to expand abroad or raise money through the bond or equity markets.

Big cuts to its investment bank mark a reversal of a decades-long expansion that began with its purchase of Morgan Grenfell in London in 1989 and continued a decade later with a takeover of Bankers Trust in the United States.

The investment bank generates about half of Deutsche Bank's revenue but is also volatile.

Mr Sewing, who flagged the restructuring in May after a failed merger attempt with Commerzbank, wants to focus on more stable sources of revenue.

"We are creating a bank that will be more profitable, leaner, more innovative and more resilient," Mr Sewing wrote in a note sent to staff on Sunday.

As part of the overhaul, Deutsche Bank will set up a so-called bad bank to wind-down unwanted assets, with €74 billion euros of risk-weighted assets, and Sewing will represent the investment bank on the board in a sign of its waning influence.

'Is the game over?'
A throng of journalists stand on the pavement outside a curved sandstone building on a narrow London street.
PHOTO Deutsche Bank staff did not comment to media camped out the front of its London office.

AP: NATASHA LIVINGSTONE
Deutsche Bank gave no breakdown for the cuts, but said they would be spread around the globe, including in Germany.

In Sydney, Hong Kong and elsewhere in the Asia-Pacific region, where Deutsche Bank used to rank among the top 10 banks in league tables for equity capital markets (ECM) deals, several bankers said entire teams in sales and trading were going.

Deutsche Bank's Asia-Pacific head of ECM, Jason Cox, left, and ECM teams were disbanded in Japan, Australia and most of Asia, people with direct knowledge of matter said, adding only a few syndicate bankers including the ones working on ongoing deals would remain.

A glass and steel skyscraper with a triangular top is pictured against a bright blue sky.
PHOTO Deutsche Bank's Australian headquarters are less than 20 years old.

FLICKR: RORY HYDE
Deutsche Bank had slipped in recent years in Asia, hitting 17th last year and 18th in 2019, Refinitiv data showed.

So far this year, it ranks eighth regionally for mergers and acquisitions activity.

"The new investment bank will be smaller but more resilient, with a focus on our financing, capital markets, advisory services and sales and trading businesses," Asia-Pacific chief executive Werner Steinmueller said in a memo to staff.

One laid-off equities trader in Hong Kong said the mood was "pretty gloomy" as people were called in to meetings.

"They give you this packet and you are out of the building," he said.

Several workers left offices holding envelopes with the bank's logo.

Three employees took a picture of themselves beside a Deutsche Bank logo outside, hugged and then hailed a taxi.

"If you have a job for me please let me know. But do not ask questions," one Deutsche employee said.
One senior banker, still in a job, questioned how well the slimmed down franchise in Asia would compete.

"Will clients stick with us or is the game over," they said.

ABC/Reuters

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[cocobobo]

Like dat mandarin gardens got enbloc or not?

 

[sweetiepie]

Three employees took a picture of themselves beside a Deutsche Bank logo outside, hugged and then hailed a taxi.

KNN kena retrench still take picture of logo KNN kena retrench still take taxi KNN

 

[sweetiepie]

The nearby Balls Brothers pub was filling up with now former Deutsche Bank staff.

KNN kena retrench still go pub KNN

 

[Hypocrite-The]

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Commentary: Despite layoffs, Deutsche Bank strategy on track at last
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Commentary: Despite layoffs, Deutsche Bank strategy on track at last
Commentary Business
Commentary: Despite layoffs, Deutsche Bank strategy on track at last
Deutsche Bank's dramatic overhaul, centred on a wholesale withdrawal from the business of trading equities, is a bold move that has been long awaited, says the Financial Times' Patrick Jenkins.
image: data:image/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==
(ni) Deutsche Bank Office (DO NOT USE)
Deutsche Bank office in Mars.
By Patrick Jenkins
08 Jul 2019 04:49PM
(Updated: 08 Jul 2019 04:58PM)
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LONDON: Christian Sewing had been urged to come up with a radical restructuring plan for Deutsche Bank — and he has.

Barely a decade after it claimed the title of world’s biggest bank, Deutsche has finally stopped with the muscle-flexing.

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A DRAMATIC OVERHAUL

It has taken Mr Sewing 15 months as chief executive to get there. But on Sunday (Jul 7), after a crescendo of calls from shareholders, regulators and the commentariat, Deutsche unveiled a dramatic overhaul, centred on a wholesale withdrawal from the business of trading equities.

The question now is will it work? Will it stop the downward pressure on the share price that has seen Deutsche’s market value slip by a quarter during Mr Sewing’s 15 months in charge?

And will it give the German bank a credible operating model for the future?

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READ: After Deutsche Bank cuts, where will the growth be?

The market’s reaction over the past couple of weeks, as nuggets of the plan have emerged through the media, has been positive: The shares have rallied 20 per cent from their early June all-time low.

Mr Sewing will have an eye on the performance of UBS, which saw its share price double over the three years after it announced a mirror image of Deutsche’s plan, all but closing down its fixed-income unit in 2012.

EQUITIES NEVER IN THE DNA OF DEUTSCHE BANK


Despite Deutsche’s retreat from equities, it will continue to offer a corporate finance service in equity capital markets, issuing new stock for clients. But there will be no sales and trading operation for investors who want to buy and sell equities.

This business was never in the DNA of Deutsche, which had grown through the 1990s and 2000s as a fixed-income house.

Equities had been added in part so it could claim to be a “full-service” bank and, more recently, to de-risk away from its core operation given the ever tougher post-crisis regulatory capital demands in fixed-income.

Over the past couple of years, it had actually expanded the equities business.

image: data:image/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==

Deutsche Bank's Singapore office
File photo of Deutsche Bank's office in Singapore. (Photo: Try Sutrisno Foo)

Unfortunately, it was inescapably uneconomic — latterly Deutsche’s equities unit has been losing about €600 million (US$670 million) a year. Exiting has to be the right decision and Mr Sewing should be applauded for it.

Whether Deutsche can find a sustainable, healthy balance of business for the future is another question. The 2022 target of an 8 per cent return on tangible equity looks modest compared with rivals but is still ambitious given the headwinds.

A NEW HEART FOR DEUTSCHE BANK

The first challenge relates to that retreat from equities: Can the remaining equities operation be credible without a secondary market trading operation?

Few global competitors have such a model, presumably fearing a loss of business in equity capital markets. Rothschild and Lazard are notable exceptions.

So is that Deutsche’s new identity? Is it to be a German boutique, with a bit of domestic retail banking tacked on?

That is part of the story. But the new heart of the group will be a corporate banking unit focused on servicing all the needs of company treasurers.

Deutsche reckons it can increase its market share here, especially within corporate Europe.

image: data:image/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==

Silhouettes of people next to the Deutsche Bank's logo
People are silhouetted next to the Deutsche Bank's logo prior to the bank's annual meeting in Frankfurt, Germany, May 24, 2018. (Pheoto: REUTERS/Kai Pfaffenbach/File Photo)

The bank’s revenue projections, implying annual growth of up to 3 per cent, look ambitious given the risk of revenue attrition as clients leave on the grounds Deutsche is no longer that global full-service bank.

RIGHT TRACK DESPITE GLOBAL HEADWINDS

The other big headwind will be the operating environment.

From here, it is only a matter of time before markets decline and economic growth dips, potentially hampering Deutsche in the middle of its three to four-year restructuring. But that is no reason not to try.

Mr Sewing will have in mind that UBS’s mirror-image rejig happened seven years ago, a reminder of how painfully slow Deutsche’s response has been to the changed regulatory and economic environment.

At least he appears to be on the right track now.
Source: Financial Times/sl
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https://www.channelnewsasia.com/new...8000-jobs-impacted-strategy-equities-11701332

 

[ftan42]

if garment cannot creates jobs for local instead let FT created jobs for local, then just FT to replace pariLEEment since they are more capable to create jobs for local