Deutsche Bank is reducing its equities team in Latin America and considering closing that business in Chile as companies sell fewer shares and the firm reins in costs, two people with knowledge of the matter said.
Bloomberg reports that the bank is eliminating staff for that business in Sao Paulo, Santiago and New York, the people said, asking not to be named because the decision isn’t public. The bank doesn’t plan cuts in Mexico, a location it deems a priority along with Brazil, one of the people said.
The reductions stem from the firm’s plan announced in 2012 to shrink annual costs by $6.2bn by 2015, one of people said. The company will continue investing in more profitable businesses in Latin America, the person said.
Deutsche Bank is this year’s top equity underwriter in Latin America, where total offerings have slumped to $1.78bn with 12 deals, according to data compiled by Bloomberg. That compares with $11.5bn in the same period last year. For all of 2013, the firm ranked 16th while competing for parts of 79 deals totalling $32.4bn. Equity-trading fees are also being reduced in Latin America, one of the people said.
To access the complete Bloomberg article hit the link below: