Why CLSA Had to Axe US Research
3 March, 2017

Euromoney, March 2017

A fun game in Asian wealth management lately has been to pick the next European bank to sell its private bank to a Singaporean or Swiss contemporary. Lately, if you had Société Générale, ABN Amro, Barclays or (a non-European left-field choice) ANZ, you were a winner.

If you went for Deutsche Bank, though, it appears you will be going home empty-handed. Asia CEO Werner Steinmueller tells Euromoney Deutsche is “absolutely committed to it. It’s a growth business.”

There were four reasons word had begun to circulate that Deutsche might consider a sale. First, most obviously, Deutsche has had well-publicized issues with capital owing to more than $10.5 billion of regulatory fines in less than two years, and this would have been an easy way to raise a lot of money, although this has been superseded by CEO John Cryan’s decision to change course and raise a further $8 billion of capital at group level.

Secondly, it looks just a little light at $45 billion under management in the region; you need about $62 billion to crack the top 10. Thirdly, there have been major senior departures, chiefly the business’s head, Ravi Raju, and key team members to UBS; and fourth, there are obvious buyers in OCBC and DBS, plus perhaps the Swiss groups.

Steinmueller says, though, the hope is to grow it, not sell it, adding: “Our aim is to have extraordinary growth, to move from about top 10 to top five.”

Read more? Full article: http://www.euromoney.com/Article/3667435/Deutsche-commits-to-Asia-wealth-management

Chris Wright
Chris Wright
Chris is a journalist specialising in business and financial journalism across Asia, Australia and the Middle East. He is Asia editor for Euromoney magazine and has written for publications including the Financial Times, Institutional Investor, Forbes, Asiamoney, the Australian Financial Review, Discovery Channel Magazine, Qantas: The Australian Way and BRW. He is the author of No More Worlds to Conquer, published by HarperCollins.

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