Deutsche Bank's done it. It's raised its $8.5bn in capital and now it's going for "prudent growth." So said CEO John Cryan in a letter to employees today. Accordingly, headhunters in London say Deutsche just made a big hire.
The new joiner is understood to be Tobias Wagnert, a former managing director in UBS's London infrastructure group. UBS confirmed Wagnert's departure and although Deutsche declined to comment, his arrival makes sense given that Deutsche hired Stephen Paine, UBS's global head of infrastructure, two years ago.
The appointment follows Cryan's promise to "deepen" Deutsche's relationships in M&A and equity capital markets when he laid out the bank's new strategy last month. It also follows the bank's decision to cut its London insurance investment banking team, led by Mark Woolley.
As Deutsche avows its focus on IBD, London recruiters say the bank's analysts and associates are unusually open to offers from rival firms. Deutsche's juniors received performance bonuses this year even though senior staff were zeroed. Even so, many are reportedly concerned about the departure of senior staff and the bank's direction. "It's the third year Deutsche Bank analysts who are most open to bids," says Andy Pringle at recruitment firm Circle Square in London. "Analyst ones don't move. Analyst twos will look and the analyst threes and upwards will start moving. A lot of people at this level are suddenly registering their interest."
Pay figures from recruitment firm Dartmouth Partners indicate that Deutsche Bank paid its third year analysts more than Barclays but less than UBS and Credit Suisse this year.
After scotching concerns about its capital, Deutsche will be hoping analysts' interest in moving doesn't turn into actual departures.
In his letter today Cryan reiterated the bank's commitment to the U.S. and Germany whilst stressing he's also optimistic about Asia. Under Cryan's new strategy Deutsche is aiming to "grow the APAC franchise." At least three people have left Deutsche's Asian business in the past week, including Kevin Burke, the bank's head of Asian debt sales. The bank has lost much of its Asian management in the past few years, including Douglas Morton, its former co-head of Asian corporate finance (last heard of suing the bank for wrongful dismissal), Venky Vishwanathan, the other co-head (also last heard of suing for wrongful dismissal), and Rob Ebert, the former head of Asian equities who was jailed last October for crashing his Ferrari into a security guard.
Deutsche has also been engaged in some big hiring in Asia, however. Last July, hired James Boyle as global co-head of equity derivatives, based in Hong Kong and Boyle has hired at least six people since arriving. Last October Deutsche also hired Mohamed Atmani from UBS as Asia head of financial sponsors. These hires were made while Deutsche theoretically had a hiring freeze. This has now being lifted, suggesting 2017 could see a lot of new recruits now that the bank's back in growth mode.
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