Deutsche Bank initiates deep cuts in restructuring exercise
26 Aug 2019 | The Asset
In a painful restructuring exercise to improve long-term profitability and returns for shareholders, Deutsche Bank had to make deep cuts to its 18,000 workforce, including in Asia. It announced a series of measures to restructure the bank’s operations, including exiting global equities and a significant reduction in corporate and investment banking risk-weighted assets.
The bank announced it will exit its equities sales and trading business, while retaining a focused equity capital markets operation. In addition, it plans to resize its fixed income activity, in particular its rates business, and will accelerate the wind-down of its existing non-strategic portfolio. In aggregate, Deutsche Bank will reduce risk-weighted assets currently allocated to these businesses by about 40%.
As part of its transformation, the bank will create a new capital release unit to manage the efficient wind-down of the assets related to business activities, which are being exited or reduced. These actions, it says, are designed to allow Deutsche Bank to focus on and invest in its core businesses of corporate banking, financing, foreign exchange, origination and advisory, private banking and asset management.
Elsewhere, several banks have announced recent senior appointments in an effort to further enhance their franchise under the prevailing competitive market environment.
Standard Chartered announced the appointment of James Cameron as global head of power, utilities and infrastructure (PUI) and cleantech, and regional head of commercial real estate for Asean and South Asia. Based in Singapore, his appointment is effective on August 5, subject to regulatory approvals, and he will report to Steven Cranwell, global head of commercial real estate and industries.
In this role, Cameron will continue to expand the bank’s footprint in its PUI and cleantech business, as well as take its commercial real estate business in the region to its next phase of growth. He brings to Standard Chartered more than 20 years of industry experience across project finance, asset finance, export finance and advisory.
Cameron was most recently co-head of infrastructure and real estate group for the Asia-Pacific at HSBC, and before that, also held various senior leadership positions in the bank, including head of project and export finance for Asia-Pacific and head of capital finance for Singapore.
Another prominent departure from HSBC was veteran loan banker Phil Lipton, who was head of loan syndication for Asia-Pacific. He was succeeded by Ashish Sharma, who only joined the UK bank in August 2018 as head of structured, leveraged and acquisition finance for the region.
At Credit Suisse, the Swiss investment bank has named Zhenyi Tang as CEO for China. Based in Beijing, Tang will drive the execution of Credit Suisse’s strategy in China across its business and regulatory activities, and will have oversight of the bank’s onshore entities.
Tang’s appointment follows Credit Suisse’s announcement in April of its plan to increase its stake in its onshore Chinese securities joint venture to 51%, subject to regulatory approvals, and the recent appointment of Shan Li to the board of directors of Credit Suisse Group. Li is the second Asia-based member of the board of directors, alongside Kai S Nargolwala.
IN • Citi Luke Lu head, Citi China Commercial China; Brendan Carney CEO, Singapore/Asean cluster head, global consumer banking division • Credit Suisse Zhenyi Tang CEO, China • EFG Private Bank Claudia Wong chief operating officer; Gerry Cheung head, AML & financial crime compliance, Hong Kong; Kelvin Tan head, independent asset managers, Hong Kong; Raju Pusapati head, FX, Asia-Pacific; Sue Pang head, operational risk control • Deutsche Bank Edward Hui regional head, structured trade & export finance, Asia-Pacific• Goldman Sachs Todd Leland co-president, Asia-Pacific, ex-Japan; James Paradise co-president, Asia-Pacific, ex-Japan • HSBC Adam Wotton director, leveraged & acquisition finance, Southeast Asia; Kanakanjan Ray head, financial institutions group, Southeast Asia • Jefferies Christopher Wood global head, equity strategy • MUFG Bank Richard Yorke head, global corporate & investment banking, Asia-Pacific • Natixis Peeyush Pallav executive director, global structured credit solutions, Asia • RBC Capital Markets Makito Nagahiro head, global markets, Japan • Security Bank Corporation Sanjiv Vohra president & CEO; Alfonso Salcedo Jr director & chair, executive committee • Standard Chartered James Cameron global head, power, utilities & infrastructure & cleantech/regional head, commercial real estate, Asean & South Asia; Madeleine Senior regional head, securities services, Europe; Craig Perrin global head sales, securities services.
OUT•Bank Julius Baer Claudia Wong executive director, front office risk control business management, Hong Kong • CLSA Christopher Wood chief strategist; Zhenyi Tang chairman & member, executive committee • Credit Agricole Securities Japan Makito Nagahiro deputy CEO & head, financial institutions group • DBS Peeyush Pallav senior vice-president, structured debt solutions group • HSBC James Cameron managing director & co-head, infrastructure & real estate group • MUFG Bank Luke Lu head, global corporate banking, China • Northern Trust Madeleine Senior managing director, Australia & New Zealand • Rabobank Adam Wotton managing director & head, capital markets, Asia • UBS Kelvin Tan client adviser, financial intermediaries desk; Raju Pusapati executive director, FX and rates