Sunday 18 March 2018

Deutsche Bank falls in private bank rankings

A statue is pictured next to the logo of Germany's Deutsche Bank in Frankfurt. Photo: Reuters
A statue is pictured next to the logo of Germany's Deutsche Bank in Frankfurt. Photo: Reuters

Joshua Franklin

Deutsche Bank dropped out of the world's top 15 private banks in 2016, a year marked by negative headlines for Germany's biggest lender.

Rankings by wealth management researcher Scorpio Partnership showed private banking assets at Deutsche Bank fell 28pc in dollar terms to $227bn (€192bn) at the end of 2016, sending it tumbling five places to 16th in Scorpio's rankings of the 25 biggest private banks in the world.

Deutsche Bank sold a wealth-management business in the US last year and withdrew from a number of countries. A spokesman for the bank said the majority of its fall in assets stemmed from the sale.

Deutsche Bank, headed by CEO John Cryan, faced a rocky 2016 in which the US Department of Justice wanted the bank to pay $14bn for mis-selling toxic mortgage-backed securities before the 2007-2009 financial crisis. The demand rocked confidence in the bank and triggered billions of dollars in withdrawals by clients. The bank eventually settled for $7.2bn.

Swiss bank UBS kept its place as the world's biggest private bank with $2.06trn in assets under management followed by Bank of America, Morgan Stanley and Wells Fargo.

Switzerland's Credit Suisse, which has prioritised private banking, was overtaken by Royal Bank of Canada and fell to sixth.

The biggest gainer on the list was China Merchants Bank, which rose five rungs to 15th.

Operating income in the industry was virtually flat as private banks faced up to low and negative interest rates as well as an increasing preference by wealthy clients for passive investments. (Reuters)

Irish Independent

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