Deutsche Bank Outlines New Wealth Management Strategy, Growing Staff by 25%

Deutsche Bank’s wealth management unit may be the key to any sustained rebound in H2 2017 and beyond. The lender has decided to go full force into the Middle East, targeting the region for a wealth management revival with an emphasis on Saudi Arabia. The new efforts will see the bank bolster its Middle East personnel, including a hiring tranche of private bankers.

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The strategic shift comes after a series of setbacks for the lender, which has resulted in Deutsche Bank losing some high-Yield Yield A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as a A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as a Read this Term clients. Its wealth management unit’s invested assets incurred a retreat of 26.0 percent in Q4 2016. Making matters worse, in December 2016 the bank publicly reiterated its capital strength following a massive Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term with US regulators – since then Deutsche Bank has seen an $8.5 billion cash call in April 2017, also progressing on a widespread restructuring plan.

Looking to turn the page on its previous setbacks, Deutsche Bank’s H2 strategy appears to be one of recruitment – a notable departure from past initiatives, including the jettisoning of upwards of 35,000 workers from its global workforce. However, Deutsche Bank’s Middle Eastern operations may be just the panacea the lender needs to sustain its Q1 momentum.

Aggressive hiring plans

Consequently, the bank is looking to substantially upgrade its personnel in the Middle East, including a continent of 80 private bankers in Saudi Arabia. In a recent interview, Peter Hinder, Deutsche Bank’s Head of Wealth Management in the Europe, Middle East, and Africa (EMEA) region outlined plans for the lender to bring in another 20 private bankers for his region, a 25.0 percent jump, according to a Bloomberg report.

With Europe in a state of flux, Deutsche Bank feels that the Middle East is more conducive to growth. According to Mr. Hinder: “We have a clear growth agenda for EMEA and Middle East is our number one priority. There will be more capital flowing into the region as Saudi Arabia is opening up.”

The move could be an attempt to undercut any future competition as well, with only a small number of banks actually garnering the requisite banking licenses to operate in Saudi Arabia and other Middle Eastern countries. If Deutsche Bank is right in its assumption that there is a groundswell of high yield clients up for grabs, other banks may quickly follow suit, given that the entire industry is currently looking for ways to boost their business and meet investor demand after successive poor quarters of growth and profits.