Deutsche Wealth Management is growing its US wealth management arm and aiming to increase its relationship managers by 25% in 2018.
The comments were made by Deutsche Bank’s head of Americas wealth management, Patrick Campion to the Financial Times.
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A spokesman for the bank confirmed the report when contacted by Private Banker International.
Campion said: “We’re getting dollar investment going into the unit for headcount . . . there’s great access to the management board. The growth characteristics for our market is strong and it makes sense to invest in the US.”
Campion added that Deutsche Wealth Management is on a mission to “grow, grow, grow”.
According to a recent report by consultancy Ersnt & Young, the net investible assets of wealthy North Americans is estimated at $23.3trn as of 2016. This is even higher than it is for its Asian counterparts whose net investible assets are valued at $9.4trn, despite projections of Asian growth.
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By GlobalDataThis is pleasant news given Deutsche Bank was recently included in a Federal Reserve Watchlist of troubled banks.
It was included after it failed the Federal Reserve’s annual stress tests, which evaluates capital planning practises of the major operating banks in the country. The Federal Reserve expressed concern over the material weaknesses in DB’s USA data capabilities and capital planning controls. However, the Federal Reserve Board had approved the capital plans of the other 34 firms.
The bank’s plans to expand its wealth management business also comes despite Deutsche Bank posting a 23% lower pre-tax income for Q2 2018.
The bank said that the decrease in income was partly driven by around €65m of investments related to the merger of Postbank and its private and commercial clients business in Germany, which led to the creation of a new legal entity called DB Privat- und Firmenkundenbank in May this year.
In 2016, Deutsche Bank told most of its US private banking to Rayond James. The part which is not sold is part which remains to be Deutsche’s wealth management business.
