Deutsche Bank cuts investment bank bonuses by more than 10%
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Staff at Deutsche Bank advising on mergers and acquisitions saw some of the deepest bonus reductions, according to sources familiar with the matter.
PHOTO: AFP
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Milan – Deutsche Bank cut the bonus pool at its investment banking division by over 10 per cent after a slump in deals and a slowdown in trading in 2023.
Staff advising on mergers and acquisitions saw some of the deepest reductions, said sources familiar with the matter, who asked for anonymity discussing internal information.
Overall, Deutsche Bank’s bonus pool was down by about 5 per cent, they added.
A spokesperson for the bank declined to comment.
The German lender warned in January that bonuses for 2023 would reflect a difficult market for its investment bank, a key driver of profit until surging rates started to weigh on dealmaking.
Peers such as Barclays have also cut variable compensation, and bankers at several Wall Street firms are bracing for flat or lower payouts.
Variable pay “will reflect performance”, Deutsche Bank chief financial officer James von Moltke said in January.
“And as you have seen in a number of different areas of the investment banking business, in particular in 2023, it has been a difficult market.”
Revenue at the investment bank declined 9 per cent in 2023, led by a 38 per cent slump in the advisory business and 11 per cent lower trading income. BLOOMBERG
