Deutsche Bank has reportedly made the terms harder for lending to its super-wealthy clients since the beginning of the Covid-19 crisis.

Deutsche Bank head of its International Private Bank Claudio de Sanctis told in an interview to Bloomberg: “We took a more conservative approach to collateral from sectors and industries affected by Covid-19.” In this context, he highlighted aircraft, commercial real estate, retail as well as travel.

In the Q3, the German lender had €46bn ($54.6bn) of loans outstanding to the sectors highlighted by Sanctis, in addition to oil and gas.

These sectors accounted for around one-third of the bank’s total credit provisions in the quarter, noted Bloomberg.

The wealth management arm of the bank reported “deleveraging” in Q1 followed by “a strong rebound” in loan growth in the subsequent two quarters, stated de Sanctis.

This has also carried into the current quarter, he stated.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Sanctis was recently handed over charge of international private bank, which was formed by integrating its wealth management and its international private and commercial business units.

The integration in anticipated to result in significant cost savings.

Recently, Deutsche Bank Americas head Christiana Riley too said at a Bloomberg event that the bank has “dialed back” its risk appetite for commercial real estate, a segment that is one of the bank’s important revenue source in the US.

Deutsche Bank has been going through a massive overhaul after several failed turnaround initiatives that included the collapse of a merger attempt with Commerzbank.

The restructure will involve 18,000 redundancies. The bank had put the downsizing exercise on hold in March to support its employees during the Covid-19 pandemic but resumed the retrenchment programme in May.

Some of its executives agreed to take pay cuts to help the organisation cope up with the pandemic.