Deutsche Bank scales back in South Africa in strategy shift
JOHANNESBURG (Reuters) – Deutsche Bank will shut down its South African corporate broking, advisory and sponsor-services as part of its plan to return to profitability under new Chief Executive Christian Sewing.
People are silhouetted next to the Deutsche Bank’s logo prior to the bank’s annual meeting in Frankfurt, Germany, May 24, 2018. REUTERS/Kai Pfaffenbach
Sewing, who became CEO in an abrupt management reshuffle in April, is scaling back its global investment bank and refocusing on Europe and its home market after three straight years of losses.
“There will be an orderly wind-up of the Advisory, Corporate Broking and Sponsor Services businesses over a period of up to six months,” spokesman Stuart Haslam said in a statement.
“We remain committed to our South African clients and our on-the-ground presence in South Africa.”
The bank, which vies with other banks such as Citi, Bank of America Merrill Lynch and JP Morgan in South Africa, will retain its debt capital markets, fixed income and treasury services.
The bank did not say how many jobs could be lost as a result of the shake-up. But a source at the bank said a small number of its 72 South African full-time staff would lose their job.
Reporting by Tiisetso Motsoeneng in Johannesburg and Andreas Framke; Editing by James Macharia and Alexander Smith
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