Deutsche Bank at Loggerheads in Australia

Deutsche Bank lobby in Germany

Deutsche Bank lobby in Germany

The future of Deutsche’s private bank in Australia has become uncertain, as the German lender is facing a tough future.

Deutsche Bank Australia is at loggerheads with some of its Asia-based executives over the future of its local private banking operations, the «Financial Review» (paywall) reports.

The bank only has about five to ten people left in its Australian private bank and some executives in Asia might want it shut down. They are said to have argued the unit is not profitable on a standalone basis and is being propped up by revenues from areas such as margin lending.

Important Proposition

According to the report, local Deutsche bankers want the unit to remain operating as it is an important proposition for the investment bank and cross referrals.

Deutsche Australia and New Zealand are led by Michael Ormaechea, who replaced James McMurdo in February after the latter was promoted to run Deutsche's Asia-Pacific corporate and investment bank.

Hong Kong May Help

Having McMurdo based in Hong Kong may help the Australian private bank's case for keeping its doors open. It has, however, been the subject of numerous detailed reviews over the last decade, according to sources.

Deutsche Bank declined to comment.

Globally, Deutsche Bank has to fight a US$14 billion demand from the U.S. Department of Justice to settle claims relating tot he mis-selling of mortgage-backed securities, as finewsa.asia also reported last week.

WEB'S BEST

Top stories from across the globe

  • A Short History of Investing in Gold – and What to Expect for 2017
  • Asia Pacific's Top Six Credit Risks For 2017
  • The 5 Most Shocking News in 2016
  • Hazel Moore: Banks Are Completely Wasting Valuable Customer Data
  • Morgan Stanley CEO Makes First-Ever Stock Sales After Bank Rally
  • Former Goldman's Partner in Boutique Venture
  • Hong Kong and Singapore in Push for Fee Transparency
More

PHOTO GALLERIES

finews.asia Networking Event

finews.asia Networking Event

Show pictures

stars China Symposium 2016

stars China Symposium 2016

Show pictures

Compare my salary

Compare my salary

Feeling Underpaid? Benchmark your salary by job title, company and location. Find out where you stand in minutes.

compare my salary

Newsletter

Newsletter-SymbolFree Subscription

Subscribe to our free newsletter and receive daily email alerts from the finews editorial team with a list of the top featured articles.

Share with us

Do you have any market intelligence to share with finews.asia – email us on info@finews.asia – All communication is completely confidential and strictly anonymous.