Published on 28 May 2024 on Zacks via Yahoo Finance
Deutsche Bank (DB) Plans to Discontinue Numis' US Operations
Deutsche Bank DB is set to shut down the U.S. operations of its London stockbroker subsidiary, Numis Securities. This decision comes to light as the company attempts to streamline its operations following a decrease in Numis’ estimated value.In October 2023, Deutsche Bank acquired Numis for £410 million ($500 million) and rebranded it as Deutsche Numis. However, in February 2024, it lowered the estimated value of the company by £200 million ($253 million) due to impairment charges that are often associated with overpaying for a business.Currently, Numis' U.S. office has around 12 employees, half of which will be transferred to Deutsche Bank's headquarters in New York, and the remaining workforce will be offered jobs elsewhere in the bank. Additionally, the Germany-based bank relocated Numis’ U.K. analysts to its new office in London, while 15 of its own equity sales employees were transferred into offices used by Numis.While DB will continue its operations in Ireland, it plans to discontinue Numis’ European Union stockbroking operation in the country, called Numis Europe. The staff from Numis Europe will be transferred to Deutsche Bank’s Frankfurt office.DB's decision to cease Numis' U.S. operations and make efforts to divest its other European offices highlights its commitment to improving efficiency and maximizing shareholder value amid a rapidly evolving market.
Over the past six months, the company’s shares on the NYSE have gained 37.8% compared with the industry’s growth of 14.4%.
