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Some of Deutsche Bank's Numis hires are already leaving for the buy-side

Deutsche Bank won't be announcing its bonuses for a few weeks yet, but it seems that people who joined when the Numis acquisition was finalised last October are already leaving. 

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Simon Bowler, the head of research at Numis, who joined the British broking firm from Exane in 2018, is understood to have left for the buyside. Georgios Pilakoutas, a retail banking analyst, is thought to have gone to the buyside too. The FCA register shows both men leaving on 30th January.

Deutsche Bank declined to comment on the exits. It's understood that very few of the 300 people DB acquired with Numis have left, however.

Deutsche paid £410m (€482m) for Numis in October 2023 and today took a goodwill writedown of €233m on the purchase, which pushed its investment bank into the red in the final quarter of last year. 

Speaking today, Deutsche Bank CFO James Von Moltke said the giant writedown shouldn't be taken as evidence that Deutsche overpaid for Numis because, "When you acquire a company above book value and consolidate it into what in accounting terms is a cash generating unit [DB's investment bank]" whose own valuation is below book value, then you "cannot record goodwill, you just have to write it off day one." It's not just Numis, said Von Moltke: "There are lots of companies that have a difference between their book value and net value, and Numis is one."

Eyeing the deal from the outside, however, insiders at rival brokerage firms in London are casting aspersions on the deal. "It seems a bit like Deutsche Bank - which is trading at 0.4x book value has bought Numis at 2x book value," says one, pointing to the handsome profits made by Numis' co-chief executives. 

Deutsche Bank acquired Numis to deepen its penetration of the UK investment banking market. Since doing so, it's won three new corporate broking mandates. The combined Deutsche/Numis entity has also been involved in multiple M&A mandates and deals since they were officially conjoined four months ago. 

There may be some hiccups, however. In equity research in particular, Numis analysts were always free to help pitch for corporate finance deals, while Deutsche Bank analysts are not. The adjustment will mean Numis researchers miss out on pay generated from corporate finance deals.  

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AUTHORSarah Butcher Global Editor

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