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Deutsche Bank bonuses to bomb?

Is Deutsche Bank going to do the dirty at bonus time?

Yes, if a new research report from Credit Suisse is anything to go by.

According to the Swiss bank, DB is emerging as one of the European houses most exposed to the credit crisis – not only does it have a huge fixed income business, it also lacks a healthy wealth management arm à la UBS to help cushion the fixed income blow.

Deutsche won’t reveal the true dimensions of its bonuses until February, when it releases its full-year results for 2007.

Last year, its cash bonuses were at an all-time high after the stock component of payouts was cut. Unless it makes some speedy redundancies, Deutsche bankers this year might not be so lucky – staff numbers at the corporate and investment bank increased 24% in the first nine months of 2007 versus the same period of 2006, but comp and benefits expenditure stayed fairly static.

The only upside is being paid in euros. Rounded up for the full year, the average investment banker at Deutsche Bank looks set to receive total comp of €404k (301k), down 22% on 2006, but down only 9% in sterling terms when exchange rate changes are taken into account.

Will Deutsche Bank’s bonuses be dire or will D-Bankers be looked after Ackermann-style?

Comments (3)

  1. Profits at DB were down more than 90% in the third qrtr + other banks aren’t going to be queing up to hire its fixed income staffs. Doesn’t take Paul McKenna to see that pay won’t be up to much there.

  2. UBS has private banking, but its investment bank is sick as a dog. Deutsche has a diversified world class fixed income division and is the stronger of the two, stupid to suggest otherwise.

    Josef’s friend Reply
  3. stock down to E78 from a high of E118, profits significantly down, $1.2bn sub prime right down in Q3, doesn’t take a rocket scientist to figure that bonuses at best will be flat, Q4 figures will show further right downs from sub prime, resulting in DB Employees being hurt hard with significantly reduced compensation packages. The exodus then begins. top down, Sayonara Ackermann, hello Jain…

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