- Hires include research, sales, prime services, person says
- Deutsche Bank investing in equities under CEO overhaul plan
Deutsche Bank AG, 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 stock-trading.
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.