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.
