Singapore: Deutsche Bank expects to double its €29 billion ($35 billion) Asian private wealth portfolio in three years as it targets rich entrepreneurs in the growing economies of China, India and Indonesia.
The projection underscores increasing competition among foreign and Asian players to capture business from the rich in a region where wealth is growing at a faster pace than the United States and Europe.
Deutsche and Credit Suisse, which have survived the financial crisis better than UBS and Citigroup, are aiming for a bigger market share in Asia.
“Asia is going through a super cycle of growth very different from what we see in the West,” Ravi Raju, head of Deutsche’s private wealth management Asia-Pacific told Reuters during a roadshow for Reuters Insider financial television.
“The markets we will be investing in are the obvious ones where the real growth in happening -- China, North Asia, Indonesia and India.”
Asia had 2.4 million people with more than $1 million in investable assets with total wealth of $7.4 trillion at end-2008, according to research by Merrill Lynch Capgemini. The market is supposed to almost double to $13.5 trillion by 2013.
Raju joined Deutsche in 2007 after a 16 year stint with Citigroup, where his last role was the head of investments for Asia Pacific and Middle East for Citigroup Global Wealth Management.
Raju said the Asia private wealth unit, which has 200 relationship bankers among a total staff of 700, wants to add 30 relationship managers every year in Asia-Pacific.
The hiring plans are less aggressive than Standard Chartered which is keen to add 100 relationship managers this year and boutique firms such as EFG which aim to double its Asia headcount to around 800 from 400 in three to five years.
He said the debt problems in Greece are a concern, but the bank is advising clients to stay invested in stocks and bonds as it sees this as a market correction.
“There was a huge amount of euphoria in the last 6 months, and I think this is just a correction in value at this point in time,” Raju said.
“I think it is a good time for clients to stay invested in the equity markets.”