Deutsche Bank is no longer one of the world’s top 15 private banks following a difficult year for the German lender, a study by Scorpio Partnership showed on Monday.
The bank saw its private banking arm getting less revenue in 2016 – a drop of 28 percent in dollar terms to $227 billion compared to the previous year, the report stated, according to Reuters.
As a result, Deutsche Bank placed 16th out of the 25 private banks analyzed. A spokesperson for the bank told CNBC that “the majority of the decline in assets was due to the sale of the Private Client Services business in the U.S. and the decision to exit around 50 countries as part of a business simplification and risk-reduction program.”
In 2016, Deutsche Bank agreed to pay a $7.2 billion settlement to the U.S. Department of Justice for mis-selling mortgage-backed securities before the financial crisis. The scandal hurt the bank’s balance sheet and more broadly confidence towards the lender.
Deutsche Bank reported a surprising increase in profits in the second quarter of 2017 though revenues fell short of market expectations. John Cryan, chief executive of Deutsche Bank, said last month that “despite the significant improvement, this level of profitability falls short of our longer term aspirations.”
UBS remained at the top of the ranking on Monday. With $2.06 trillion of assets under management, the Swiss lender is the world’s biggest private bank.