Deutsche Bank overhauls treasury unit

Tuesday, 27. August 2019 10:57

German lender Deutsche Bank AG will revamp its treasury unit to better utilize its excess cash reserves, the Financial Times reported on Tuesday.

According to the report, the banking giant combined its treasury markets and investment operations into a single team and hired Francois Jourdain, who was previously with Barclays and the Bank of England, to manage it. The bank's treasurer Dixit Joshi said that it has around €246 billion in liquidity reserves and has earmarked €30 billion that it could use to retire costly liabilities and invest in assets with higher rates of return. He added that the bank will start investing some of its surplus funds in longer-dated assets that could earn between 100 and 120 basis points more than it currently earns.

The news comes as Deutsche Bank is undergoing a massive restructuring of various segments of its business. Reports over the weekend said that it and Swiss financial services company UBS Group AG held talks on forming a European alliance in mid-June but that a deal could ultimately not be reached.

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Breaking the News / DZ