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"We are going to build equity and plan to do business completely," said John Gibbons, who heads the Deutsche Bank's trading bank, the "Handelsblatt" (Monday issue). The shrinkage phase of the transaction bank is over. "We have done the consolidation work, and the growth will come from new deals, new markets and rising interest rates," Gibbons said. "And we want to grow faster than the market."
The Transaction Bank is one of those "stable companies," which plans according to new CEO Christian Sewing of 2021 is expected to generate two-thirds of all Deutsche Bank revenues. In the first quarter, however, the division's revenues, which included payments and cash management and securities services, decreased by 12%. In particular, the bank justified this by the withdrawal of certain customer segments and regions, as well as by changes in the exchange rate.
Gibbons seeks in particular takeovers and investments in payment transactions. Payment traffic is "absolutely fundamental" for the future of the bank. On a peak day, the institution made 42 million smaller transactions in the euro area (Sepa transactions). "Imagine the amount of data generated by these companies." Customers would need this data for their risk management and the development of new business that the bank could deliver.
The transaction bank could invest in the business despite the group's turnaround plan. "Asia will remain the main engine of growth, particularly India and China," said Mr Gibbons. "We will expand in the region and enter new markets."
(Reuters)
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