Deutsche Bank to significantly scale back commodities business

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Jobs will go.

Deutsche Bank announced that it is significantly scaling back its commodities business. The business will now focus on Deutsche Bank’s core competencies of financial derivatives and precious metals.

This decision will result in the bank exiting the dedicated trading desks for energy, agriculture, base metals and dry bulk. 

A Special Commodities Group has been established which will manage an orderly wind down of these businesses. The financial derivatives and precious metals businesses will be integrated into Deutsche Bank’s Fixed Income and Currencies platform to take advantage of existing synergies.

Colin Fan, Co-Head of Corporate Banking & Securities at Deutsche Bank, said: 'As part of Strategy 2015+, we are actively managing and reviewing our business portfolio. The decision to refocus our commodities business is based on our identification of more attractive ways to deploy our capital and balance sheet resources. This move responds to industry-wide regulatory change and will also reduce the complexity of our business'.

Bloomberg News reports that about 200 people will be affected by the measures, which include job losses or the sale of individual businesses, said a person familiar with the matter, who asked not to be identified because the information isn’t public. A Deutsche Bank official declined to comment on the measures.

Deutsche Bank to Shrink in Commodities as Revenue Slides

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