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Deutsche Bank poaches talent to target Europe's wealthy
DEUTSCHE BANK AG hired a team of around a dozen private bankers from Credit Suisse Group AG as Germany's largest lender shifts resources to wealth management while slashing tens of thousands of trading jobs worldwide.
The hire from one of Deutsche Bank's key rivals comes as numerous lenders in Europe tilt towards the more stable revenues produced from managing money for the wealthy. The bankers, who are largely based in Italy, resigned from Credit Suisse on Monday, according to people familiar with the matter.
The move also illustrates the radical shifts under way at Deutsche Bank, which this month unveiled an overhaul that is set to cost 7.4 billion euros (S$11.3 billion) by 2022. Deutsche Bank's wealth management business is small compared to rivals such as Credit Suisse and UBS Group AG, but it's one area where chief executive officer Christian Sewing wants to expand.
Deutsche Bank is scaling up investment in the Wealth Management unit, led by Fabrizio Campelli. The new hires will join the European business headed by Claudio de Sanctis, who moved from Credit Suisse last year. Roberto Colleta will head the Italian team, as well as leading Deutsche Bank wealth management in the country, the people said.
Deutsche Bank offered some bankers pay increases of up to 40 per cent as well as matching their 2018 bonuses, according to people familiar with the matter. The lender declined to comment on the hires in Italy or on speculation that it might have paid above market rates.
"Credit Suisse is fully committed to Italy and in particular to our Italian clients," the Swiss bank said in a statement. "We will continue to grow, invest in and hire senior talents in this key market, which is of strategic importance to Credit Suisse." Deutsche Bank targeted an even larger number of Credit Suisse relationship managers, but the Swiss lender moved to retain the employees with offers of increased compensation, the people said.
The departure of the Italian team comes weeks after Iqbal Khan, abruptly left earlier this month. He had enjoyed a rapid ascent to the highest echelons of the bank and was seen as a potential successor to chief executive officer Tidjane Thiam. BLOOMBERG