Deutsche Bank will leave the Asian stock market in a "radical" overhaul

BERLIN / TOKYO – Deutsche Securities, a Japanese subsidiary of Deutsche Bank, will withdraw from the sale and trading of shares in the Asia-Pacific region as part of a large-scale restructuring initiated by the German lender, which calls for a "radical transformation", according to a spokesman for the group.

The bank is seeking to stop the decline in its share price by removing 18,000 jobs worldwide by 2022, or 20% of total bankers. The reductions will focus on the volatility of its investment banking operations, which have not generated sufficient profits to justify the risks.

The spokesman in Japan declined to elaborate on the number of job cuts in the stock sector, as well as the timing of the complete withdrawal. The representative stated that the company would continue its bond business, as well as its foreign exchange advisory and mergers and acquisitions activities. "We maintain our global presence with major hubs in the US, Europe and Asia, which is particularly important for our corporate customers."

The unit in Japan has about 500 employees.

Deutsche Bank announced Sunday that it would make a significant reduction in payroll globally, by abandoning its sales and trading activities. The bank also announced that it would consolidate 74 billion euros of badets from its investment banking business into a separate unit to be divested.

The lender is expected to record a loss of 2.8 billion euros for the second quarter in order to pay the downsizing. While swallowing the temporary rise in red ink, the company is aiming to reduce its reliance on risky investment banking, focusing more on regulations and fund management.

Deutsche Bank has been actively expanding its investment banking business, including securities trading, since the acquisition of Bankers Trust in 1998 for $ 10 billion. Prolonged quantitative easing by the European Central Bank hurt the lender, as interest rates were kept down.

The departure of the head of the investment bank, Garth Ritchie, was announced Friday.

Bloomberg also announced that Deutsche Bank plans to close most of its equity business in the Asia-Pacific region, as the company is expected to discontinue its cash trading, equity research and potential underwriting activities. initial public offers. It can, however, retain its margin loan business.

Writer Nikkei Eri Sugiura in Tokyo contributed to this report.