Embattled German banking group Deutsche Bank intends to strengthen its wealth management business in Europe as part of a turnaround strategy, reported Reuters.

Deutsche Bank head of wealth management Europe Claudio de Sanctis believes that client relationship manager hiring and takeovers can drive growth.

de Sanctis noted: “In principle, my view would be in the next two to three years we prove the organic case, which is very substantial.

“When we have that credibility then — given that WM is important and Europe is core — then we will look at potentially doing acquisitions.”

The focus will be on affluent families and entrepreneurs in the domestic market, as well as in Italy, UK and Spain.

The bank also looks to target countries in eastern Europe including Poland, the Czech Republic, Hungary and Romania.

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de Sanctis said: “We have a very good corporate banking presence in these countries locally. However, we haven’t been very active on the wealth management side there – it is a full potential to be exploited.

“For now, it makes sense to do it on a cross-border basis, and Luxembourg will be the hub.”

According to de Sanctis, flows in Europe were “definitely positive” this year.

Similar views were reiterated by Deutsche Bank Wealth Management global head Fabrizio Campelli last month, when he unveiled plans to raise the bank’s wealth management headcount by 300 by 2021.

This is said to be done by hiring relationship and investment managers.

The reason for the bank’s increasing focus on wealth management is said to be the business’ less capital requirement and less cyclical earnings.

Reuters also quoted Deutsche Bank Wealth Management CIO Christian Nolting in this context.

“The bank has said it wants to focus on areas where we can compete and where we can win, and we think in wealth management that is the case,” Nolting said.

The new plan come shortly after Deutsche Bank’s massive overhaul, which led to 18,000 layoffs and the bank’s exit from equities sales and trading.