The German investment and financial services firm, Deutsche Bank aims to broaden its European operations, which handles the assets of wealthy clients and market share from rivals following the staunching of the outflow of assets. On the other hand, other parts of its business are currently facing tremendous cuts.
According to Claudio de Sanctis, employing new client relationship managers and maybe making acquisitions within several years could support fuel growth. Sanctis is the head of wealth management in Europe and also the chief executive of Deutsche Bank (Switzerland) Ltd.
Moreover, the division is aiming at entrepreneurs and wealthy families in core countries like Germany, Italy, Britain, and Spain. Also, it includes the most untapped markets in eastern Europe.
On Sunday, Germany’s largest bank declared a major reconstructing. It will rip about 18,000 jobs and scale back its investment banking operations.
Sanctis stated, “We already are among the biggest wealth managers in Europe in terms of assets.”
Then he added, “That will be helpful in terms of being credible with European entrepreneurs.”
In the previous month, the German bank announced to employ an additional 300 relationship and investment managers, which is for its wealth and management (WM) business by 2021.
Then, in its 2018 revenue, the business accounted for around 7% of the 25 billion euros, or $28 billion, of Deutsche Bank.
The firm’s Chief Investment Officer Christian Nolting stated, “It wants to focus on areas where we can compete, and where we can win.”
“We think in wealth management –that is the case.”
Deutsche Bank’s Competition
For banks, wealth management is an advantage because it does not need a lot of capital. Also, the earnings tend to be less pessimistic compared to other parts of the business.
Aside from that, it is exceptionally competitive. And some companies are already big players here such as Swiss banks UBS and Credit Suisse. And these upstart fintech companies are attempting to make progress.
Meanwhile, the not-so-good headlines about over the German bank sent the company into a lot of struggles. As a result, the wealth management of Deutsche Bank suffered a loss in assets in Europe. But this year, its flows in Europe were undoubtedly excellent.
Furthermore, recruiting new relationship managers will definitely boost assets, and some clients can make the switch as well. Aside from that, acquisitions might be on the cards, although not quickly.
De Sanctis aforementioned, “In the next two to three years, we prove the organic case, which is very substantial.”
The head of wealth management also declared, “When we have that credibility, given that WM is important and Europe is core, then we will look at potentially doing acquisitions.”
Despite this week’s domination of job cuts in headlines, it seems like there is no issue regarding the German firm in hiring to set heat in its wealth management.
” Sanctis mentioned regarding the situation, “If they want to bring clients over, they need to ensure that they have a very interesting, and well-knowing platform to be able to deliver.”