Page 1 of 2

How is Deutsche Bank's profitability in Asia, and is the German bank's wealth arm in the region still an M&A candidate? Lok Yim, head of Asia, the Middle East and Africa, speaks exclusively to finews.asia. 

By Shruti Advani, Guest Contributor finews.asia

Deutsche Bank's Lok Yim, head of Asia, the Middle East and Africa, managed to stem a mass exodus when he took the helm two years ago, he said in the first installment of a finews.asia interview. Now, his focus is turning to growth.

Inevitably, Yim's talk of bolstering the bank’s platform and people begs the question of costs: can Deutsche Bank’s balance sheet sustain his ambitions? «The cost-income ratio has actually fallen,» Yim asserts. «Our revenue growth has been strong and we have put in some cost efficiencies.»

Client Cull

The bank is also believed to have culled clients that could cost more than they were worth in upkeep – onshore Japanese, Australian and European clients using Asian booking centers that would have been tricky to explain under the new MiFID II regime.

«As your processes and technology improve, the number of people you need in the back office is lower. We now have robots booking trades,» he says. Although he seems to have the bottom line under control, it is prospects for revenue growth that really gets Yim fired up.

 M&A Target?

Too genteel to discuss hard targets, he reluctantly reveals that $88 billion in the short term («because it is a lucky number») and $100 billion over the medium term are significant goalposts. «All of this growth will be organic,» he says putting to rest any other theories sparked by the frenzied dealmaking market in Asia. «I don’t think there are many businesses left to buy in Asia.»

 If it isn't a buyer, could Deutsche Bank be a seller?

Rumors abound about one business or the other being up for sale – the Americas, the onshore India business or the wealth management unit in its entirety.

«I don’t know, but I don’t think so,» Yim says unflinchingly when asked point-blank about a possible sale. «We want our more stable businesses to contribute a larger share [to the group revenues] so there is an emphasis on growing wealth management, the conversation is about what do we need to give this business so that it can grow.»