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Deutsche Bank tumbles down private bank rankings

Monday, August 07, 2017 - 01:52

Deutsche Bank has dropped out of the world's top 15 private banks in 2016, a year marked by negative headlines for Germany's biggest lender, according to new rankings. David Pollard reports.

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Thirteen trillion dollars of assets at the 25 biggest private banks .... Wealth management for clients with at least one million dollars in assets is far from going out of fashion. But one bank has been slipping out of favour. Deutsche now 16th in the world rankings of private banks, according to new ratings. That's a drop of five places from last year. (SOUNDBITE) (English) WILSON KING INVESTMENT MANAGEMENT, HEAD OF RESEARCH, RICHARD HUNTER, SAYING: "It certainly has been a difficult time for Deutsche Bank. Obviously it's had to have the cash call, it had the large seven billion dollar fine in the US on the basis of misselling mortgage securities. It's also facing the wider issues at the moment of low interest rates, not traditionally good for banks, and general question marks over the banking sector in terms of the added cost of regulation and compliance." It still has 227 billion dollars of private banking assets on its books. A spokesman telling Reuters most of the drop derives from its sale of its US wealth management business last year. As such, it won't make for the unhappy reading of its recent results. Boss John Cryan seen under even more pressure now to turn Deutsche Bank around, after it warned of a lower full-year outlook - and posted a sharp drop in capital market trading. (SOUNDBITE) (English) WILSON KING INVESTMENT MANAGEMENT, HEAD OF RESEARCH, RICHARD HUNTER, SAYING: "It needs to get confidence back not only in its financial health but also in what it intends to do and what it intends to be. So this is very much a small first step for Deutsche Bank in terms of its recovery which could take some time yet." But one other surprise was Credit Suisse - overtaken by Royal Bank of Canada and falling to sixth place, according to researchers Scorpio Partnership - despite prioritising private banking. The biggest gainer was China Merchants Bank - it rose to 15th. While UBS kept its place as the number one ... with over two trillion dollars in assets under management.

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Deutsche Bank tumbles down private bank rankings

Monday, August 07, 2017 - 01:52