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.
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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.
