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Exclusive | Deutsche Bank bets on Asia recovery, targets higher profitability in region, APAC CEO says
- Deutsche Bank expects institutional, capital markets activity to pick as region recovers
- German lender expects its return on tangible equity in Asia-Pacific to hit 15 per cent by 2022
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Deutsche Bank is betting that its key businesses in Asia – investment banking, corporate banking and wealth management – will benefit from an improving macroeconomic outlook as the region recovers more quickly from the economic fallout of the coronavirus pandemic, according to the bank’s Asia-Pacific chief executive.
The German lender is optimistic that cross-border transactions and fixed income activities will pick up as China, India and other parts of Asia return to more normal activity levels, playing to the bank’s strengths, Alexander von zur Muehlen said.
Deutsche Bank said at its investor day this month that it is now targeting a return on tangible equity (ROTE) of 15 per cent in its Asia-Pacific business by 2022. That compares with a ROTE of 10 per cent in the region this year.
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“We do expect fee pools to develop positively, barring any Covid-19 induced explosions or implosions in the real economy,” Muehlen told the Post.
04:41
Small businesses still struggling eight months after Wuhan’s Covid-19 lockdown was lifted
Small businesses still struggling eight months after Wuhan’s Covid-19 lockdown was lifted
China’s and India’s economies are expected to grow at a rate of 8 per cent or more next year, while the five biggest Asean economies are expected to post a 6.2 per cent combined increase in gross domestic product, according to the latest forecast from the International Monetary Fund.
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