Negotiations 鈥榦n track鈥� for Deutsche Bank鈥檚 equities sale to BNP Paribas
26 July 2019 Frankfurt
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Negotiations are on track for the sale of Deutsche Bank鈥檚 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鈥攁s of end Q2鈥攚as 鈧�3.1 billion after strategic transformation charges cost 鈧�3.4 billion euros.
Excluding these charges, Deutsche Bank said net income would have been 鈧�231 million versus 鈧�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 鈧�88 billion, this included net inflows of 鈧�9 billion.
In the first six months of 2019, assets under management increased by 鈧�88 billion with cumulative net inflows of 鈧�20 billion.
Christian Sewing, CEO of Deutsche Bank, said: 鈥淲e 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: 鈥淲e鈥檙e not just at the beginning of our transformation of Deutsche Bank鈥攁fter two weeks, we鈥檙e already right in the middle of it. And I鈥檓 incredibly optimistic when I think about what I鈥檝e seen at our bank in that short time.鈥�
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鈥攁s of end Q2鈥攚as 鈧�3.1 billion after strategic transformation charges cost 鈧�3.4 billion euros.
Excluding these charges, Deutsche Bank said net income would have been 鈧�231 million versus 鈧�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 鈧�88 billion, this included net inflows of 鈧�9 billion.
In the first six months of 2019, assets under management increased by 鈧�88 billion with cumulative net inflows of 鈧�20 billion.
Christian Sewing, CEO of Deutsche Bank, said: 鈥淲e 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: 鈥淲e鈥檙e not just at the beginning of our transformation of Deutsche Bank鈥攁fter two weeks, we鈥檙e already right in the middle of it. And I鈥檓 incredibly optimistic when I think about what I鈥檝e seen at our bank in that short time.鈥�
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