German banking group Deutsche Bank has announced plans to create a new international private bank by integrating its wealth management and its international private and commercial business units.
With around €250bn in assets under management, the new unit would cater to 3.4 million private, wealth and commercial clients.
It would generate nearly €3bn in combined revenue.
The new unit will unite the bank’s wealth management clients across Germany, Europe, the Americas, Asia and the Middle East and Africa, as well as private clients and small and medium-sized enterprises in Italy, Spain, Belgium and India.
Global head of wealth management Claudio de Sanctis will serve as the head of the new division.
His remit will further increase as he will now also assume the role of EMEA CEO, replacing Ashok Aram who quit the bank for personal reasons.
Aram also served as the head of Private & Commercial Business International.
The scope of the bank’s domestic Private Bank Germany division will remain same.
De Sanctis noted: “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.”
The move is part of a restructure undertaken by the embattled bank after facing legal hurdles and failed turnaround initiatives including a merger attempt with Commerzbank that collapsed.
The overhaul includes 18,000 redundancies, and exit from the equities sales & trading business, among others.
The bank had put the layoffs on hold in March to support its employees during the Covid-19 crisis but resumed the exercise last month.
Besides, its top executives agreed to surrender one-month salaries to help the bank save costs amidst the pandemic.