Deutsche Bank Seeks to Crack Top 5 of Global Wealth Managers

  • Company wants to minimize risk in `challenging' environment
  • Deutsche Bank to split wealth unit between four regions

Deutsche Bank AG, setting out priorities for its new wealth management division, said it will seek to become one of the world’s top five managers of money for the rich over the next few years.

Germany’s biggest bank will engage in “continuous investment in response to an ever more challenging regulatory and control environment,” Fabrizio Campelli, who leads the wealth unit, said in a note to staff seen by Bloomberg on Tuesday. A Deutsche Bank spokeswoman confirmed the contents of the memo.

Deutsche Bank is balancing a goal of raising profitability with efforts to prevent a repeat of fines for misconduct that have eroded capital levels and made it the worst-valued global lender. The company faces competition for affluent clients as banks across the globe shift their focus from trading businesses, which have become costlier to run since the 2008 financial crisis.

The lender said in October that it ranked among the 10 biggest global wealth managers. Scorpio Partnership, a London-based consulting firm, ranks Deutsche Bank as the 12th biggest wealth manager based on assets under management at the end of 2014. That ranking includes U.S. firms that don’t have a global presence.

Deutsche Bank’s wealth unit will be split between four regions, according to the memo. Joachim Haeger will oversee Germany, Marco Bizzozero will be responsible for the rest of Europe, the Middle East and Africa, Chip Packard will run the Americas and Ravi Raju the Asia Pacific region.

John Cryan, who took over as co-chief executive officer from Anshu Jain in July, broke up the combined asset and wealth management unit created by his predecessor. The asset management unit, which caters to institutional investors, is led by Quintin Price, formerly of BlackRock Inc.

The company said in November that it would review its procedures for bringing on new customers to tighten controls.

Among appointments to the wealth unit’s 12-member executive committee, Thomas Klemm will lead a new function that provides transparency on client activity and helps identify and disseminate best practices. Anurag Mahesh will be responsible for key client partners and help the regional heads serve the bank’s “most sophisticated clients,” according to the memo.

Bernd Amlung will be head of global products and solutions and will oversee capital markets, wealth planning and product marketing. Christian Nolting will be appointed the wealth division’s chief investment officer and will work closely with the asset management unit, according to the bank.

Balaji Prasanna will continue as head of global lending and deposits, while Anil Venuturupalli will be the wealth unit’s chief operating officer and oversee its strategy and business development.

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