Deutsche Bank unveils massive expansion in China
“Emerging markets are a big focus for us, and what we have experienced in the Middle East for instance, has garnered major growth and profits already,” Werner Steinmüller, head of global transaction banking and member of the group executive committee at Deutsche Bank, told a pre-Sibos press briefing in London. “Within six months of opening our offices in the Kingdom of Saudi Arabia we were already in the black. With our launch in mainland China, we have no doubt that it will be almost profitable from the first day.”
Deutsche Bank announced in April this year that it was launching trade finance and corporate cash management services out of its branch in the Saudi capital Riyadh. GTB includes commercial banking products and services for corporate clients and financial institutions, including domestic and cross-border payments, professional risk mitigation for international trade and the provision of trust, agency, depositary, custody and related services.
Also in April Deutsche Bank revealed it had opened a branch in Chongqing following the approval from China Banking Regulatory Commission. The Chongqing branch is the bank’s fifth in China, after Beijing, Shanghai, Guangzhou and Tianjin. Chongqing has a growing population that has more than doubled over the last 10 years.
“We believe Chongqing is another step into broadening our presence in one of the fastest growing markets,” said Steinmüller. “Chongqing is a major area of growth in China – we believe it’ll be profitable from the outset.”
Elsewhere, Deutsche Bank GTB has been looking at Africa, especially Egypt, Lagos in Nigeria, where it sees opportunities for its trade finance arm.
“In North Africa we are still treading carefully as there are questions over political stability and – in some of the countries – corruption,” said Steinmüller. “However, it is still an area we are focusing on.”