Deutsche Bank's CEO has stated that the company is targeting the Asia-Pacific region to constitute at least 15 percent of its global revenue in the coming years. As part of this strategy, the bank is actively recruiting senior bankers for its origination and advisory, wealth management, and private banking sectors in the region. Christian Sewing emphasized in a video interview that the German bank anticipates significant growth from Asia-Pacific, which represented 11 percent of total net revenue before credit loss provisions last year, particularly driving expansion in its core operations.
“Since I’ve been CEO, I have made it clear that one key growth region is Asia-Pacific”, said Sewing, who took the helm in 2018. “There is not one of our Asian markets where I would say that there is no growth. Asia-Pacific will drive a significant part of the growth in Deutsche Bank going forward”.
According to its annual report, Deutsche Bank, headquartered in Frankfurt, derived 44 percent of its revenue from its domestic market of Germany last year. The Americas, primarily the United States, contributed approximately 17 percent, while the United Kingdom and Europe, the Middle East, and Africa regions each accounted for around 14 percent. Deutsche Bank operates profitably in 15 markets across Asia-Pacific, including Hong Kong and mainland China, all of which, as stated by Sewing, offer significant growth opportunities. These opportunities are particularly focused on corporate banking, strategic advisory services within the investment bank, and private wealth management sectors.
Deutsche Bank has significantly increased its global investments, with a particular focus on the Asia-Pacific region over the past 18 months. This effort includes substantial enhancements to the origination and advisory capabilities of its investment bank, as well as expansions in its private banking and wealth management divisions. In contrast, competitors like Goldman Sachs and Morgan Stanley have reduced their workforce. Deutsche Bank notably saw the largest increase in headcount in Asia-Pacific, rising by 16.6 percent to reach 27,095 employees as of 2023.
Earlier this month, Deutsche Bank bolstered its senior investment banking team in the Asia-Pacific region with two key appointments. Deepak Dangayach was named head of sponsors financing, joining from UBS, while Victor Jiang, formerly of China International Capital Corp, was appointed co-head of technology, media, and telecommunications. In March, Michael Hufton, previously at Morgan Stanley, also joined as co-head of infrastructure and utilities for Asia-Pacific within the investment bank.
Deutsche Bank is emphasizing private wealth management as it expands beyond its traditional corporate and investment banking offerings. In March, the bank appointed Chester Liu as market head for North Asia. CEO Christian Sewing highlighted Hong Kong and mainland China as particularly promising markets for the private banking sector. Mainland China, home to over 6 million millionaires accounting for 10 percent globally, and Hong Kong, with a high concentration of millionaires per capita and benefiting from investment migration trends from the mainland, are key focal points. The bank positions itself to Asian clients as a distinct "European alternative" to local and US-based banks.