FRANKFURT Nov 16 Deutsche Bank's
retail banking chief is focussing on overseas expansion and a
renewed emphasis on measuring what clients earned as a way to
regain traction in an industry where client trust has been
damaged by the financial crisis.
Rainer Neske, head of private and business clients, a
division which boasts 28 million clients in Germany, Spain,
Italy, China and India, said the crisis has brought a renewed
focus on tapping into strongly growing market abroad.
"A stagnating population threatens growth opportunities in
the long run. That's why retail business in emerging markets is
of great significance," Neske said at an event hosted by Reuters
Since 2007, Germany's biggest lender has increased the
number of clients in Italy, Spain, Portugal, Belgium and Poland
from four to five million, while doubling customer deposits and
raising loans by 35 percent.
Deutsche has also built a retail business in India and China
as a way to position itself for growth as its German business
faces limited room for expansion due to the stagnating
Neske said his division was now primarily focussed on
organic growth, rather than on expanding through further
acquisitions. Deutsche Bank only recently bought Deutsche
Postbank, Germany's largest retail bank by clients, and spent
the past months working on integrating the lender formerly owned
by Deutsche Post.
Neske said he has not been tempted to bid for individual
retail branch offices that have been put up for sale by
competitors in Italy, for example.
"I see this as a cleansing of the market," Neske said,
adding that the efforts to integrate different branch networks
rarely justify the price being asked for them.
At home it has changed the emphasis to focus on what
clients earned, as well as measuring revenue growth for the bank
"The crisis of trust is not just a phase which lasts two or
three years. Client attitudes have changed fundamentally. The
times of blind trust have forever disappeared," Neske said.
Neske further said he did not see a dramatic expansion of
the German retail branch network.
The division targets a pretax profit of 3 billion euros
($3.84 billion) by 2015.
Germany's flagship lender does not have a strategic goal for
maintaining a balance of revenues between the different
divisions at Deutsche, which include asset and wealth
management, investment banking, as well as retail banking, Neske
"We want each of the divisions to develop. But there is no
strategic target for business balance," Neske said.
($1 = 0.7817 euros)
(Reporting By Edward Taylor)