Deutsche Bank co-Chief Executive Anshu Jain is arguing against holding on to a stake in Chinese bank Hua Xia as Deutsche reconsiders its near-universal range of banking services, a German weekly reported. WirtschaftsWoche magazine cited supervisory board sources as saying Jain had repeatedly called into question Deutsche's near-20 percent stake in Shanghai-listed commercial bank Hua Xia, worth about 1.6 billion euros ($1.8 billion).
The Chinese bank is seen as absorbing too much capital while lacking future prospects, according to the report. Retail and commercial banking chief Rainer Neske, however, has been a staunch defender of the investment, the magazine said. Deutsche is examining its business model as it faces huge fines for alleged misconduct and tough regulations. Lagging profitability made it the worst stock market performer among global investment banks in 2014. A Deutsche Bank spokesman reiterated that results of the strategic revision would be unveiled in the second quarter and declined to comment further.
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