JOHANNESBURG: Deutsche Bank AG is shutting down its South African advisory, corporate-broking and sponsor-services divisions as part of a global review of its business.
The move comes after Europe’s largest lender reported two straight annual losses in 2016 and 2017. It is now under the leadership of newly appointed CEO Christian Sewing, who has been tasked with leading the bank’s turnaround amid poor investor confidence and downgrades from top rating agencies.
Shares of Europe’s largest investment bank are trading near a record low, as short sellers pile on and credit derivative traders once again signal doubts about the firm’s health.
It’s part of a painful pattern for the bank and its investors: another spate of bad headlines keeps outweighing the good.
“There will be an orderly wind-up over a period of up to six months,” a Deutsche Bank spokesman said in response to questions, without elaborating on the number of jobs affected.
“Our debt capital markets, fixed-income and treasury products in South Africa will not be affected. We remain committed to our South African clients.”