Deutsche Bank has confirmed that it will close its wealth management business in Australia and service clients from regional hubs in Singapore and Hong Kong.
The exit follows similar moves by other investment banks, including UBS, Goldman Sachs and Bank of America Merrill Lynch, which have recently ceased Australian private wealth operations to focus on core investment banking products and services.
“The restructuring of our business in Australia is in line with Deutsche Bank’s Strategy 2020, which aims to achieve a simpler and more efficient organisation, and the global wealth management strategy to serve clients through selected, scalable hubs,” a Deutsche Bank spokesperson said in a statement.
The transition of client activities to alternative providers is expected to be completed in the first half of 2017.
Deutsche’s wealth management business has been offering high-net-worth clients advisory, portfolio management and lending services. The bank does not disclose assets under management or the number of clients.
Earlier this month The Wall Street Journal reported that global Deutsche Bank executives had been contemplating dramatic options for the German lender, including selling all or part of a key business, a sign of growing pressure to speed up a flagging overhaul. Chief executive John Cryan has set out a long-term plan to shrink the bank and cut costs.
As part of a continuing review of strategic options, the bank has analysed possibilities including selling all or part of its asset-management business.