Deutsche Bank AG, which runs Europe’s biggest investment bank, hired three traders for its interest rates division as it weighs an overhaul of the securities unit.
Ryan Sbarra will join from BlueCrest Capital Management to head Deutsche Bank’s sterling desk, the company said in a statement on Tuesday. Kal El-Wahab and Kilian Frensch are coming from Credit Suisse Group AG and Brevan Howard Asset Management to make markets for clients in interest rate swaps, according to the statement.
Co-Chief Executive Officer John Cryan, who replaced Anshu Jain last month, is pressing ahead with the bank’s plan to bolster profitability by reducing costs and cutting back businesses. Cryan has signaled he may shrink the trading operation built up by his predecessor as some investors have called for a more aggressive revamp of the securities unit to bolster capital.
The bank continues “to invest in this space” and the hires enable the firm to broaden the products it offers, Sam Wisnia, head of rates in Europe, said in the statement.
Revenue from rates rose in the second quarter from a year earlier “reflecting increased client activity, notably in Europe,” the company said last week. While Deutsche Bank doesn’t disclose how much the business earns, revenue at the wider fixed income and currencies unit rose 16 percent to 2.11 billion euros ($2.3 billion) in the second quarter from a year earlier.
Cryan inherited a two-month-old plan by Jain and co-CEO Juergen Fitschen to lift returns by lowering adjusted expenses by about 15 percent by 2020 and shrinking the investment bank by as much as 17 percent through 2018. He said he will provide details of the strategy in October.