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).

The newly-integrated AWM division has proved to be a key constituent in Deutsche’s banking model.

Deutsche 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).

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.


Source: Private Banker International