Deutsche Bank Hires Citi's Boyle to Lead Equity Derivatives

  • Boyle to co-head equity derivatives, run Asia Pacific equities
  • Current Asia Pacific equities head Rob Ebert to depart bank

Deutsche Bank AG, Europe’s biggest investment bank, hired James Boyle from Citigroup Inc. as global co-head of its equity-derivatives business following a slump in the unit’s sales.

Boyle, who is based in Hong Kong, will share leadership with Brad Kurtzman and replace Rob Ebert as head of equities for the Asia Pacific region, Deutsche Bank spokesman Michael West said by e-mail. Boyle resigned from the same role at Citigroup’s after four years at the lender, people familiar with the matter said Tuesday.

Deutsche Bank Co-Chief Executive Officer John Cryan is seeking to boost stock-trading operations under a restructuring plan to reduce the Frankfurt-based lender’s reliance on trading debt. The strategy has been challenged by losses and risk-management issues at the equity-derivatives unit that caused sales to slump in the second half of last year.

“The move should be a very positive one for Deutsche Bank,” said Oliver Rolfe, managing director at Spartan Partnership Equities Ltd., a London-based recruitment firm that focuses on the stock-trading business. “It’s the experience that Boyle has got. He’s been through difficult times previously.”

Amanda Williams, a spokeswoman for Deutsche Bank in New York, declined to comment. Boyle couldn’t immediately be reached for comment.

Shares Rise

Deutsche Bank climbed as much as 8.8 percent, the most since Feb. 12 and was up 8.6 percent at 15.19 euros as of 3:53 p.m. That cut’s this year’s decline to 33 percent.

Boyle joined Citigroup in 2012 after roles at Citadel LLC and Merrill Lynch & Co. and became global head of equity derivatives two years later. Equity derivatives are financial instruments whose values are based on underlying securities such as common stock.

Brad Kurtzman, Boyle’s co-head, also worked at Citadel, Citigroup and Merrill Lynch before joining Deutsche Bank. He was named head of equity derivatives in November. Rob Ebert, the departing head of equities for Asia Pacific, has worked at the lender since 1996, according to his LinkedIn page.

Equities Slump

Total equities sales at Deutsche Bank tumbled 24 percent to 1.1 billion euros ($1.25 billion) in the second half of 2015 from a year earlier, according to a March 11 presentation. Revenue from equity derivatives was “significantly lower” because of losses from securities that the bank held on its own balance sheet and “challenging risk management,” the presentation shows.

“It has been a disappointment,” Chief Financial Officer Marcus Schenck told analysts on a Jan. 28 call. “It’s not a situation that we find acceptable.”

The world’s biggest banks generated $16.3 billion in revenue from equity derivatives in 2015, a 14 percent jump on the previous year as sales to Asian clients increased in the first half, according to Coalition Development Ltd. Societe Generale SA is the top performer in the industry by revenue, followed by JPMorgan Chase & Co., Goldman Sachs Group Inc. and UBS Group AG, while Deutsche Bank ranked between 10th and 12th, according to the research firm.

Boyle joined Citigroup four years ago when the New York-based bank was going through similar tumult. Then, poor performance at the equity-derivatives unit had helped stock-trading revenue to tumble in 2011, prompting the bank’s equities chief Derek Bandeen to overhaul management at the division.

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