In theory, Deutsche Bank still needs to get rid of a few staff. Speaking last week when the bank released its third quarter results, CFO James von Moltke said the bank will need to spend an extra €200m in additional restructuring charges in the fourth quarter as it lays people off (and pays severance) instead of waiting for them to leave. However, this isn't preventing Deutsche from making strategic hires where appropriate.
The German bank just recruited James Hubbard, the former co-head of energy research at Numis.
Hubbard joined as an oil and gas research analyst in London according to his LinkedIn profile.
Deutsche Bank cut its equities sales and trading division and many of its analysts in July 2019. However, it retained some analysts to support its equity capital markets business, which achieved a 130% increase in revenues in the first nine months of this year compared to 2019, and may therefore feel inclined to hire.
Hubbard spent four years at Numis before joining DB this month. Prior to that he spent five years as head of energy and resources research for Asia at Macquarie and three years at Morgan Stanley.
Deutsche is also understood to have hired Emmanuel Papadakis, who's said to be joining from Barclays to cover pan-European equities but is currently still on gardening leave.
Deutsche Bank isn't alone in making strategic picks for its equities business. Liberum just recruited Simon Fickling for equities specialist sales, covering mining, industrials and chemicals. Fickling also had an interlude at Macquarie, which closed its London equities business in October 2019.
Zaki Ahmed, founder of equity research-focused headhunter Financial Search Ltd, said there's been an upsurge in demand for sell-side equity researchers this year. "The COVID crisis has actually helped sell-side analysts, who are back in demand in a post-MIFID II world," said Ahmed, adding that there's stronger demand for quality research and a great need to understand company performance during the pandemic.
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