According to Dealogic, a provider of software, communications and analytical products, designed to meet the demanding requirements of the investment banking industry, Deutsche Bank trailed its global investment banking rivals in lucrative areas such as arranging stock market listings and advising on mergers and acquisitions, last year.
Against this backdrop, the move forms part of a plan envisaged to expand the Germany-based bank’s regional platform, which is said to be strong in foreign exchange, bond issuance and credit and derivatives trading. Reportedly, Deutsche Bank had a market share of 26% in regional foreign exchange trading and remained a major provider of derivatives across Asia in 2009.
Especially the private wealth management division and transaction banking unit of Deutsche Bank aim to double their revenues by 2013. Deutsche Bank also looks to open more retail branches in India and China.
Reportedly, Deutsche Bank acquired 30% in China-based asset management firm Harvest. The bank also increased its stake in nationwide lender Huaxia Bank to 17.4%. In 2009, to underwrite mainland initial public offerings, it formed Zhong De Securities with a domestic firm.
According to Josef Ackermann, CEO of Deutsche Bank, besides expanding sales and trading in the US, the bank also plans to consolidate its presence in the Asia Pacific region organically to realize comparatively high earnings growth. Mr Ackermann said: “The more benign markets going forward provide a good environment for us to capitalize on the position we have found ourselves in Asia.”
Robert Rankin, former head of investment banking at UBS and CEO of Deutsche Bank in Asia Pacific, said: “We think we can materially take market share and grow at a rate in excess of our competitors.”
