The new business unit of Deutsche Bank will have nearly €250bn of assets under management and a combined revenue of about €3bn
Deutsche Bank to merge its wealth management and private and commercial business international units. (Credit: Deutsche Bank AG)
Deutsche Bank said that it will create a new international private bank by merging its wealth management and private and commercial business international units.
The consolidated business unit will cater to 3.4 million private, wealth, and commercial clients, said the German banking group.
The new business unit will have nearly €250bn of assets under management and a combined revenue of about €3bn. It will be headed by Claudio de Sanctis, who most recently was the global head of the wealth management unit.
Claudio de Sanctis said: “With the International Private Bank, we will create a truly global organisation with a unique focus on serving entrepreneurial individuals and families with European connectivity as well as a personal banking powerhouse in major Eurozone markets.
“Combining our internationally focused Private Bank businesses will allow us to develop our market share within and across local markets. We will be able to provide greater access for private banking clients to our wealth management capabilities and to combine forces to offer superior digital services to our private, wealth and commercial clients.”
Deutsche Bank has been implementing a restructuring strategy
According to Deutsche Bank president and private Bank head Karl von Rohr, the combination of the two business units is the next step in the transformation of the group’s private bank division as announced in July 2019. Back then, the German banking group said that it will cut nearly 18,000 full-time jobs by 2022 in a restructuring move for cutting its total costs by a quarter by 2022.
The new international private bank division will bring together wealth management unit’s globally connected clients in Germany, Europe, the Americas, Asia, and the Middle East and Africa, along with private clients and small and medium-sized enterprises in Italy, Belgium, Spain, and India.
Deutsche Bank said that its domestic private bank Germany unit will remain unchanged in its scope. Alongside the newly created international private bank division, the domestic private bank Germany unit will form the private bank, which is one of four business divisions in the group’s core bank business.
For the first quarter of 2020, Deutsche Bank saw a 67% drop in its net profit at €66m, compared to a net profit before tax of €201m in the same quarter in the previous year.