Deutsche Bank has seen some outflows from its wealth management division but the withdrawals were not significant according to senior executives, responding to concerns about the possible impact of a U.S. fine.
Germany’s biggest lender is battling to contain the fallout from a U.S. demand for a $14 billion settlement over the sale of toxic mortgage bonds before the global financial crisis, with markets worried that a fine of that size could cripple the bank.
Wealth management client assets managed by Deutsche stood at 361 billion euros ($405 billion) as of end-June, with clients in Germany and the rest of Europe accounting for just over half of that amount. Fabrizio Campelli, head of Deutsche’s global wealth management business, said that the bank had seen some fund outflows driven by the news of the last few weeks and it was working with clients to address their concerns.
The bank has also lost its head of Asia Pacific wealth management Ravi Raju and a senior banker in his team this week. Deutsche swiftly promoted Lok Yim as the head of Asia Pacific wealth management unit. Yim also said outflows in Asia had not been significant. Asia-Pacific clients account for about 14 percent of Deutsche’s global wealth management assets.
Deutsche’s Asian wealth management unit in Asia was ranked eighth in a 2015 survey published by Asian Private Banker. UBS led the survey, managing $274 billion worth of assets, followed by Citigroup .