UBS Excluded From Deutsche Rights Issue Over Hiring Row - Report

Josh O'Neill

28 June 2017

A spat over poaching in Asian wealth management helped 's recent rights issue, according to the Financial Times.

Germany's largest lender learnt its Swiss rival had been trying to use its financial woes to lure staff to its wealth divisions in Asia, and these practices were one reason UBS was excluded from the underwriting process, people familiar with the matter reportedly told the publication.

UBS, the world's largest wealth manager, had a lead role in Deutsche Bank's 2014 capital raising, but was absent from the eight banks named this year to underwrite the Frankfurt-headquartered bank's €8 billion ($9 billion) rights issue.

Tensions between the two firms arose when UBS poached Deutsche Bank's most senior wealth management executive in Asia, Ravi Raju, last October.

After hiring him, UBS tried to snap up several other Deutsche Bank executives and told some they should have joined because “Deustche might not be there in a few years' time”, according to the people familiar with the situation.

Lok Yim, Deutsche Bank's head of Asia-Pacific wealth management, said earlier this month that his unit would hire 50 client-facing staff as part of a global wealth management recruitment drive.