Negotiations ‘on track’ for Deutsche Bank’s equities sale to BNP Paribas
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Negotiations ‘on track’ for Deutsche Bank’s equities sale to BNP Paribas 26 July 2019Frankfurt Reporter: Jenna Lomax
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Negotiations are on track for the sale of Deutsche Bank’s prime finance and electronic equities platform to BNP Paribas, Christian Sewing, Deutsche Bank CEO, revealed.
The announcement of this negotiation with BNP Paribas comes after Deutsche Bank said it is to exit its equities sales and trading business, while retaining a focused equity capital markets operation, as part of a radical transformation.
As part of its Q2 results, Deutsche Bank reported over 900 employees have either been given notice or informed that their role will be eliminated since the announcement of the transformation strategy.
Deutsche Bank reported that its net loss—as of end Q2—was €3.1 billion after strategic transformation charges cost €3.4 billion euros.
Excluding these charges, Deutsche Bank said net income would have been €231 million versus €401 million in the prior-year period.
Overall, revenues were essentially flat or growing in more stable businesses, including global transaction banking, private and commercial bank and asset management, which made up 65 percent of revenues in the quarter.
Assets under management were up €88 billion, this included net inflows of €9 billion.
In the first six months of 2019, assets under management increased by €88 billion with cumulative net inflows of €20 billion.
Christian Sewing, CEO of Deutsche Bank, said: “We have already taken significant steps to implement our strategy to transform Deutsche Bank. These are reflected in our results. A substantial part of our restructuring costs is already digested in the second quarter. Excluding transformation charges, the bank would be profitable and in our more stable businesses revenues were flat or growing. This, combined with our solid capital and liquidity position, gives us a firm foundation for growth."
He added: “We’re not just at the beginning of our transformation of Deutsche Bank—after two weeks, we’re already right in the middle of it. And I’m incredibly optimistic when I think about what I’ve seen at our bank in that short time.”
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