Deutsche Layoffs Could Lead to Asia Growth
Newly freed capital from cost-cutting at Deutsche Bank could be redirected to its Asia business including corporate banking and wealth management.
The bank will cut 18,000 jobs and close its equity sales and trading business globally, targeting a staff of 74,000 worldwide by 2022. This could open up new capital for reinvestment, according to Deutsche Bank APAC CEO Werner Steinmueller, calling the region he oversees as «the market for investments for the bank».
«The APAC franchise has a good performance,» he said in a recent «SCMP» report. «In nearly all products, we had revenue increases and profitability in the first quarter. In fact, it was a record result for many years. So we are a growth area and getting the investments.”
Corporate banking and wealth management
Steinmueller calls the corporate bank in Asia the «number one» destination for investments, an area with already ongoing momentum which he expects to accelerate under the new strategy. Within corporate banking, there will be a focus on technology, China and Australia, such as in cash management capabilities.
The APAC CEO also noted that the regional wealth management arm could see a boost in jobs but did not specify a number or the type of roles. Deutsche Bank Wealth Management ranks 11th in Asia by assets under management with around $56 billion, according to «Asian Private Banker», as of 2018.
