Deutsche Bank have announced plans to double
profitability at its Asset & Wealth Management (AWM) division
in a group-wide strategy update.
The German bank has outlined its focus on
doubling profitability through integration and efficiency by
focusing on the ultra high net worth and emerging market client
segments.
Growth in alternative investments is also seen
as a key area of development, while the bank will aim to increase
leverage in assets under management (AuM).
New direction
The newly-integrated AWM division has proved
to be a key constituent in Deutsche’s banking model.
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By GlobalDataDeutsche is aiming to fully utilise its
approximately €900bn ($1.15trn) in AuM and invested assets.
This will be done using a mixture of active
and passive investment strategies, along with retail asset
management, combined in a single business unit to produce added
value for customers.
The division will also include former
Corporate Banking & Securities passive and third-party
alternatives businesses including exchange traded funds (ETFs).
Reverse in fortune
Deutsche estimates the reconfigured AWM unit
will double its income before income tax from €0.8bn to about
€1.7bn in 2015, which would lead to AuM and invested assets rising
to €1trn.
The bank will hope the new strategy will help
reverse its plummeting profit figures.
Profit at the AWM division plunged 85% in the
second quarter, down to €35m ($43m) from the €227m recorded in the
same period last year.