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Claudio de Sanctis leapt from Credit Suisse's top European wealth post to the helm of Deutsche Bank's private banking arm. He tells finews.com how the German lender is making good on its wealth strategy.

Claudio de Sanctis, are you worried about how you can differentiate your strategy from your predecessors and put your own stamp on it? 

I don't feel a massive need to differentiate from Fabrizio [Campelli] – he did an amazing job of defining the franchise geographically. I come in from a markets perspective to define the segments we want to compete in. That is the next natural step in this evolution, the two strategies are complementary.

What geographies or segments will you focus on?

We don't aim to be the most relevant private bank for every single client in the world. The geographies we are focussed on are Asia; the Middle East; Continental Europe and the East and West Coast of the U.S. 

What segments are you pursuing?

We are best positioned to compete with entrepreneurial families – these are the clients to whom we offer the most value. As a result, our collaboration with the asset management and global markets divisions has intensified over the last few months.
 
One-bank focus is a trend among large banks.

Our framework for the investment and private bank to collaborate is very sophisticated. We could make even more of it with a more disciplined sales structure. Over the next 12-18 months we hope our collaboration revenues will be multiples of what they are now.

How?

Over the next four to eight weeks, we will have in place a family office team based in London within the global markets business. The family office business will continue to be brought in by the relationship managers, but it will be executed with global markets.

«Splitting revenue 50-50»

Revenues will be split 50-50 between the wealth management and global markets business.
 
Will lending continue to be a big part of the strategy?

Lending will be core to any strategy at Deutsche Bank because no other bank has the expertise that we do in lending against a whole range of asset classes. Having said that, it is also a fundamental part of our strategy not to change our conservative risk profile in lending.

Can you be more specific?

We have capabilities in lending against assets that no one else on the street has.

«One-third of growth from lending, two-thirds investing»

For example, we are just about the only large bank to lend against art; we are recognized as the number-one franchise for commercial real estate lending in the U.S.

How much of your revenue would you like to come from lending?

A good mix is for one-third of our growth to come from lending and two-thirds from investments.
  
How concerned are you about uncertainty in Asia?

We don’t take a quarter-on-quarter view on Asia, or any other market for that matter. My conviction that Asia will be the primary source of new business remains stronger than ever.

«If you want trouble, you can find it in Europe as well»

In our experience if Hong Kong slows down, for example, then Singapore or Mumbai pick up the pace and offset it. I may be biased because I spent a portion of my career working in Singapore but the potential in Asia – the wealth, the calibre of its entrepreneurs – is staggering.

Do you worry about the higher risks associated with emerging markets?

If you want to get in trouble you can find it in any jurisdiction; there are nefarious assets in Europe as well. Ultimately, the risk-return profile of emerging markets is not that different from other markets: the higher risks are balanced by higher returns. 

«Our European growth will be onshore-driven»

The way forward is not in avoiding emerging markets altogether because we fear compliance risks. Instead, we need to focus on the organizational culture, ensuring we have the right people with the correct morals.

Where do you see growth in Europe and more mature markets? 

Our growth is Europe will be driven by the onshore business – as much as 90 percent of it I expect. The key European markets for us are Germany, where our domestic business is a fantastic story.