Deutsche Bank targets Asia’s rich as Credit Suisse clients flee

Share

Share

SINGAPORE – Deutsche Bank aims to double private banking revenue from Asia in five years by ramping up efforts to attract the region’s ultra-wealthy, joining other firms seeking to pounce on opportunities created by the near-collapse of Credit Suisse Group.

The bank is targeting entrepreneurs with investible assets of at least €50 million (S$73 million), Ms Young Jin Yee, the lender’s international private bank head for Asia-Pacific, said in her first interview since joining from the Swiss rival in January.

“Our ambition is to double our revenue by 2027 with only a 30 per cent increase in our relationship-manager headcount,” said Ms Young, who spent about 20 years at Credit Suisse.

Everyone “has to do more with their clients”.

Marking her first 100 days at the Frankfurt-based bank, Ms Young hosted an internal town hall to launch the strategy on Tuesday in Hong Kong, while hundreds of employees across the region dialled in from Greater China, Singapore, India and Dubai.

The lender has been hiring senior wealth executives in Asia, given it is one of the fastest-growing markets.

As at 2021, Deutsche Bank ranked 14th on the Asian Private Banker list for Asia excluding mainland China, based on US$79 billion (S$105.3 billion) in assets, compared with the Swiss bank’s US$239 billion, according to the publication, which put UBS Group on top of that list.

Relationship managers at the time were 210, less than a third of the 680 at Credit Suisse.

Ms Young reports to Mr Claudio de Sanctis, head of the international private bank – which includes wealth management. He joined in 2018 after five years at Credit Suisse and a longer stint at UBS.

The pairing of the duo highlights Deutsche Bank’s ambitions to catch up with its Swiss and US rivals, which have long dominated the wealth industry.

Ms Young, 48, was No. 2 at the Swiss bank’s Asia wealth operations.

“We want to make sure that in the next five years and beyond, we are recognised as the best private bank for Asia-Pacific, the way we define it,” said Ms Young, a Singaporean, who is based in the city-state. “Size doesn’t matter. We want to be the bank that clients want to bank with, especially for entrepreneurs and their families.”

Ms Young’s strategy echoes that of her previous employer. Under former chief executive Tidjane Thiam, Credit Suisse was wooing rich entrepreneurs to manage their personal fortune and help their businesses with stock listings or acquisitions.

Additionally, Deutsche Bank has corporate banking operations that lend to businesses in Asia.

Deutsche Bank will have to compete with UBS, the world’s largest wealth manager that agreed to buy Credit Suisse in a government-backed rescue in March.

Among foreign banks, UBS dominates most wealth markets in the region, including Greater China and South-east Asia.

Other wealth managers with big Asian operations and headcount include Citigroup and HSBC Holdings.

In Asia, HSBC, DBS Group Holdings and China Merchants Bank are among firms gaining wealth flows from a market share loss triggered by disruption from the UBS-Credit Suisse merger, Bloomberg Intelligence senior analyst Sharnie Wong said in a report.

There are plenty of former Credit Suisse assets up for grabs.

The bank saw clients pull US$4.4 billion from US and European funds since the lender agreed to be acquired by UBS, according to Morningstar. The figures only include funds that report daily numbers and do not represent the full universe of Credit Suisse asset management.

Even before the hastily arranged deal with UBS, Credit Suisse had seen a steady exodus of top private bankers and a drumbeat of asset outflows, which topped US$110 billion in the fourth quarter.

Hiring plans

Deutsche Bank will not go on a massive hiring spree as part of this push, but will add selectively, Ms Young said.

Based on Asian Private Banker’s estimate of Deutsche Bank’s relationship manager headcount, a 30 per cent increase over five years would translate into roughly 13 hires a year.

Deutsche Bank is also reviewing whether to increase the minimum threshold of assets clients need to keep with the bank in Asia, Ms Young said.

The bank’s push for the ultra-rich means it is focusing more on clients with minimum €50 million of investible assets with the bank, or those with a net worth of at least €150 million.

Hiring has begun across the three core markets in Asia, which comprise North Asia, global and onshore India, as well as South-east Asia, said Ms Young.

North Asia is the biggest of the three, accounting for roughly 40 per cent of the bank’s assets under management in Asia-Pacific.

South-east Asia

Mr Johanes Oeni, a former managing director at Credit Suisse, started in April to ramp up South-east Asia, the smallest among the three regions in terms of assets and revenue for Deutche Bank.

Mr Oeni was the Swiss bank’s most senior private banker for Indonesia.

Ms Young said she is hiring for the South-east Asia team but declined to spell out the number of headcount planned for the year.

“Growing for the sake of growing to be on the league table, then things can fall through the cracks,” she said. “That happens when you try to grow at all costs.”

Image by: AFP

Share

Latest

Related Content

Media Kit

    Data Protection

    The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

    The Digital Banker Summit

    Moving on from FTX: is 2023 the year of CBDCs?

    Indonesia, Jakarta

    Thailand, Bangkok

    Philippines, Manila

    Contact Us

      Data Protection

      The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

      Request Nomination Pack

      Error: Contact form not found.

      Registration Form

      Error: Contact form not found.

      Registration Form

      Error: Contact form not found.

      Registration Form

      Error: Contact form not found.

      Registration Form

      Error: Contact form not found.

      Registration Form

      Error: Contact form not found.

      The world’s preeminent Private Banks and Wealth Managers are demonstrating a committed drive in innovation, advisory, new products and services to meet the sophisticated needs of their clients.

      COVID-19
      Amid economic activity revival on the back of the Covid-19 vaccine program, organisations moving from business continuity plans to stable working environments, together with the slightest improvement in unemployment numbers, forced the world to adjust to new realities. Coming to terms with the “new normal”, global investors are now on the look-out for attractive and stable investment opportunities.

      Needs of Private Wealth customers and families worldwide have drastically changed due to the pandemic and banks have had to accelerate efforts to deploy a multi-channel service strategy and safeguard clients’ businesses and wealth against negative impacts of economic uncertainly.

      The Global Private Banking Innovation Awards will recognise the world’s best private banks, wealth managers and asset managers that are championing innovation across advisory, service, products, customer experience and more.

      Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. 

      Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.

      Request Nomination Pack

      Error: Contact form not found.