Deutsche Bank Gears Up For Biggest Expansions In Investment Banking Space Post Credit Suisse Crumble

Deutsche Bank AG DB is gearing up to capitalize on the growth opportunities post-collapse of its peer Credit Suisse Group AG CS.
The company stated its plans to hire personnel to support the expansion of its investment bank advisory team, the Financial Times reported.
"We are investing in advisory, which is a high-returning business. Being in M&A and ECM is key. 'The UK is a natural market to focus on' because it has 25 per cent of the European corporate finance fee pool," the report quoted Fabrizio Campelli, Head of Corporate Bank and Investment Bank.
Last week, Credit Suisse's head of the financial institutions' group in Southeast Asia decided to join Deutsche Bank in the coming months.
Also, in the last two months, DB hired 26 managing directors and plans to add more on top of adding around 344 employees after completing the Numis-acquisition. These moves mark one of DB's most significant expansion initiatives since the financial crisis.
The company aims to expand the advisory side of the investment bank while reducing heavy reliance on high-risk, capital-intensive fixed-income sales and trading businesses.
Last week, during its Q1 earnings announcement, the company disclosed cutting 800 senior positions in its non-client-facing infrastructure units to save costs.
"We are at a multiyear cyclical deal-flow low point right now, and with the market poised to rebound in [20]24, 25 and 26, this has created a great opportunity for us to invest in and attract talent," said Mark Fedorcik, co-head of investment banking.
As per the report, Fedorcik added, with the senior hires and Numis deal, Deutsche was aiming to increase its global market share in M&A advisory back to its 2014 level of 4.5 percent from the less than 2 percent it has fallen to since.
Price Action: DB shares closed higher by 0.92% at $11.01 on Friday.

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