If you want to work for Deutsche Bank in Hong Kong or Singapore, you’ll want to know which functions the firm is now focusing on following the restructuring initiated by chief executive Christian Sewing last year.
At the Deutsche Investor Day on Wednesday, Alexander von zur Mühlen, CEO for Asia Pacific, outlined his plans for the bank in the region. Here are some of his key points.
Asian banking fees will rise in 2021
“With the latest GDP estimates of more than 5% per year, this region is predicted to grow significantly faster than the rest of the world. Banking fee pools are also expected to rise accordingly,” von zur Mühlen told the investor day.
It’s about helping Asian clients expand globally
Von zur Mühlen highlighted the “rising scale of Asian globalization”. “Just as Deutsche Bank has helped European multinational clients to expand throughout our history, we are now leveraging our experience to help Asian clients with their global expansion,” he added. DB is, for example, advising South Korea’s SK Hynix in its current $9bn acquisition of Intel’s memory and storage business.
“Increasingly, we’re supporting outbound operations for clients headquartered within Asia as they expand around the world. This group of Asian clients generated a further roughly 500m euros in revenues booked in EMEA and the Americas,” von zur Mühlen said. “With the continued rise of Asia Pacific multinationals, the evolution of trade corridors and the increasing quantum of capital seeking foreign investment opportunities we are confident these numbers will grow.”
Front-office hiring may be on the cards
DB will invest more in its platform within the Asia Pacific region. “We aim to hire to strengthen client coverage and further enhance our relationships,” von zur Mühlen said.
Watch out for growth in corporate banking
DB’s Asian corporate bank, which offers trade finance, cash management and securities services, was ranked number five in Asia in 2019. It is now “set for growth”.
DB is going well in Asian fixed income
Fixed income and currencies is the strength of Deutsche’s slimmed-down investment bank in Asia, according to Von zur Mühlen, who said it ranks “number three in FIC across the region”. “We have resized our corporate finance platform globally and in Asia Pacific as part of our transformation strategy and we now have a focused, efficient and effective setup,” he added.
He’s optimistic about capital markets
Von zur Mühlen pointed to the “continued development and liberalisation of Asian financial markets, including the internationalisation of the Renminbi and the Indian Rupee, and the opening of China’s bond markets. This plays to DB’s strengths as a “leading global capital markets platform”.
The creation of significant wealth within the region is opening up “attractive opportunities in the fields of wealth and asset management”, he said. DB has been hiring private bankers this year, according to headhunters. “In Asia Pacific we are positioning ourselves even more strongly to support our clients by increasing connectivity between different parts of the bank,” Von zur Mühlen said, possibly referring to private bankers collaborating with their colleagues in IBD.
“We offer clients an extensive suite of banking products both onshore and offshore. For instance, we’re one of only two foreign banks permitted to underwrite bonds issued by local and foreign corporations in China – thanks to the Type A underwriting license we have been granted there,” Von zur Mühlen said.
DB is still investing in tech in Asia
“We will continue to invest in infrastructure and technology to support business growth,” he added.
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