(Reuters) - Deutsche Bank (DBKGn.DE) plans to close its Houston office as part of a pull-back from investment banking coverage of the U.S. oil and gas sector, according to an internal memo, the contents of which were confirmed on Friday by a spokeswoman.
Germany’s largest lender, under new Chief Executive Christian Sewing, called time last week on its strategy of being a global investment bank, a move expected to lead to a cut of around 10 percent of its U.S. workforce.
An internal memo from Mark Fedorcik, co-head of corporate and investment banking in the Americas, said while the bank was committed to the other economic areas covered by its U.S. investment bank, including financial services and healthcare, it wanted to focus on sectors in which it had the greatest strength.
“We have decided to rationalize our U.S. oil and gas investment banking coverage footprint which will include closing our Houston office,” the memo said.
The move would likely affect around 50 people employed in covering oil and gas, according to a source familiar with the matter.
Deutsche Bank would continue to service U.S. oil and gas clients seeking debt capital markets and corporate banking treasury products. Its power and utilities business would be moved into its industrials group, the memo added.
Reporting by David French; Editing by Dan Grebler