Deutsche Bank's top private banker is easing back from generous lending to wealthy clients. The German bank had opened the nozzle in its bid to expand its private bank.
Frankfurt-based Deutsche is tightening the terms for loans it grants to its super-wealthy clients, private bank chief Claudio de Sanctis told «Bloomberg». «We took a more conservative approach to collateral from sectors and industries affected by Covid-19» and specifically aircraft, commercial real estate, retail, and travel, he noted.
The remark represents the first sign that Deutsche is pulling back on a 200 billion euro ($237 billion) credit push with wealthy clients. Like Credit Suisse, the German bank was attempting to parlays loans to the super-rich into new business, though the Swiss bank has also eased back on formerly generous lending.
Picking Up Clients
In August, European wealth boss Marco Pagliara told finews.com the lending strategy had paid off for Deutsche: The bank picked up clients «who were disappointed on how aggressively some other banks» had called margin loans, he said. Wealth managers asked their clients to stump up more collateral against loans during a widespread tumble in financial markets in March.
Deutsche had 46 billion euros of loans outstanding to the sectors de Sanctis described as pulling back from, as well as to oil and gas, in the third quarter, according to «Bloomberg». These industries made for nearly one-third of its total credit provisions during the period. The private bank unit wrote 2 billion euros of net new client loans in the three months.
