Deutsche Bank Raids Rival Talent to Target Wealthy Europeans

(Bloomberg) -- 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 thousands of trading jobs worldwide.

The hire from one of Deutsche Bank’s key rivals comes as numerous lenders in Europe tilt toward 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 underway at Deutsche Bank, which this month unveiled an overhaul that is set to cost 7.4 billion euros ($8.3 billion) by 2022. The lender’s wealth management business is small compared with rivals such as Credit Suisse and UBS Group AG, but it’s one area where Chief Executive Officer Christian Sewing wants to expand.

“The ability to show we have the entire bank behind us -- that lends us credibility," Fabrizio Campelli, global head of wealth management at Deutsche Bank, said in a phone interview. “This particular historical change of the bank strategy is giving us an edge."

The bank is scaling up investment in the wealth management unit. The new hires will join the European business headed by Claudio de Sanctis, who moved from Credit Suisse last year. Roberto Coletta will head the Italian team, as well as leading Deutsche Bank wealth management in the country, the people said.

Highest Bidder

Deutsche Bank offered some bankers pay increases of up to 40% as well as matching their 2018 bonuses, according to people familiar with the matter.

“We stick to paying people market price and don’t distort the market -- its not growth at all costs. But we really feel the bank is supporting wealth management," Campelli said.

The German lender‘s ambitious growth plans include hiring 300 new relationship and investment managers by 2021. Europe will have the greatest share of new hires, followed closely by emerging markets, and then the U.S., he said.

“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 employees with offers of increased compensation, the people said.

The departure of the Italian team comes weeks after Iqbal Khan, the former head of international wealth management at Credit Suisse, abruptly left the bank. He had enjoyed a rapid ascent and was seen as a potential successor to CEO Tidjane Thiam.

To contact the reporters on this story: Patrick Winters in Zurich at pwinters3@bloomberg.net;Nicholas Comfort in Frankfurt at ncomfort1@bloomberg.net

To contact the editors responsible for this story: Dale Crofts at dcrofts@bloomberg.net, Christian Baumgaertel

©2019 Bloomberg L.P.