Deutsche Bank has accepted that it’s struggling to revive its capital market operations. The bank’s market share in terms of advising companies on IPO and other stock related issues dropped to 1.5 percent in the first seven months of the year from nearly 5 percent in 2018.
Josef Ritter, Deutsche’s head of ECM Europe, the Middle East, and Africa told the media that, “Our business is largely driven by client perception. If a bank is perceived to be getting everything right all the time, it is much easier to win the next ECM deal.”
The bank’s revenues from the ECM business dropped 35 percent in the first half to €118 million from a year ago. Its share of ECM business in Germany also dropped to 8.6 percent in the first half of 2019. It currently occupies the fifth spot. Not so long ago, it held the top spot and controlled close to a quarter of the German market.
According to reports, the lender has set aside over €1 billion to cover the cost of offloading derivatives in its bad banks or capital release unit. The cost is a part of the €7.4 billion budget the bank has set aside for its restructuring.
Last month, the German lender caused a stir with the announcement of 18,000 job cuts which accounts to one-fifth of its global staff. According to the bank, it is part of a reorganisation or restructuring designed to return the bank to its core business of corporate banking, private banking and asset management.