Deutsche Bank AG (DBK), the Frankfurt-based bank that’s courting wealthy clients, hired Caroline Kitidis from Goldman Sachs Group Inc. (GS:US), according to two people familiar with the matter.
Kitidis, 38, will work with wealth-management clients in the U.S., said one of the people, who asked not to be identified because the bank hasn’t announced her appointment. She’ll be part of a push by continental Europe’s biggest bank to boost profits from advising the rich and to catch up with UBS AG and Credit Suisse Group AG. (CSGN)
Deutsche Bank Co-Chief Executive Officer Anshu Jain, facing stricter capital requirements that make some investment banking operations unprofitable, promoted Michele Faissola, one of his investment-banking lieutenants, to run wealth and asset management last year. Jain said in June he’s meeting with top clients himself to help meet the goal.
Kitidis ran a team at Goldman Sachs that created derivatives for private and institutional clients, according to a biography on a Bentley University alumni page. The item says she was in the class of 1997 at the school in Waltham, Massachusetts. She joined New York-based Goldman Sachs in 1998, according to Financial Industry Regulatory Authority records. Kitidis was named a managing director in 2009.
Pholida Barclay, a spokeswoman for Deutsche Bank in New York, declined to comment, as did Tiffany Galvin, a Goldman Sachs spokeswoman.
“The big challenge is for Deutsche Bank to catch up in terms of profitability in wealth management -- this is an area that has been comparatively disappointing,” Antoine Burgard, an analyst at Natixis SA in Paris who recommends investors buy the shares, said in a telephone interview. “Whenever you see a wealth manager move, they generally take clients with them.”
Last month, Deutsche Bank listed 10 recent hires it made to its asset and wealth management group, including Raphael Zagury as head of key client partners and wealth investment advisory for Latin America. Zagury was previously in charge of creating derivative investments for wealthy clients at Bank of America (BAC:US) Corp.’s Merrill Lynch unit.
The bank is trying to attract 50 percent more clients with at least 30 million euros ($39 million) to invest by 2015.
Deutsche Bank was the eighth-largest wealth manager globally last year with $387.3 billion of managed assets, Scorpio Partnership, a London-based research company, said in a study published this week. UBS AG (UBSN) of Switzerland, the biggest wealth manager, had assets of $1.7 trillion. Total wealth management assets grew 8.7 percent in 2012 to $18.5 trillion.
The company’s shares climbed 0.4 percent to 33.39 euros at 11:39 a.m. in Frankfurt. Gains this year of 2 percent lag behind the Bloomberg Europe Banks & Financial Services Index’s 4 percent increase in the period.
Three years of net outflows at the asset and wealth management unit were followed by 6 billion euros of inflows in the first quarter, according to information published on Deutsche Bank’s website.
Faissola is aiming to increase pretax profit at the unit to 1.7 billion euros in 2015 from 700 million euros last year. He told reporters in Frankfurt last month that he’s become “more confident” about reaching the division’s goals.
Asset and wealth management generated 221 million euros of pretax profit in the first quarter, equivalent to 9.2 percent of Deutsche Bank’s total pretax profit of 2.41 billion euros.
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