DB Plans 50 Hires, Scales Private Banking in Emerging Markets

Deutsche Bank AG DB is set to expand its emerging markets private banking operations, according to a Reuters report, which was published in Yahoo Finance. The German bank intends to add up to 50 relationship managers this year within its Private Bank’s emerging markets unit. Its selective hiring is expected to continue through 2027 and 2028, though management did not disclose region-specific headcount figures yet.

The move forms part of a broader plan to increase front-office headcount in the emerging markets franchise by 50% over the next three years. A significant portion of the 250 bankers previously announced under Deutsche Bank’s wider wealth expansion strategy are likely to be allocated to this segment.

DB Capturing Growing Wealth in Gulf & North Asia

The hiring push reflects Deutsche Bank’s effort to capitalize on expanding wealth pools across the Gulf and North Asia, where ultra-high-net-worth (UHNW) clients are increasingly seeking geographic and asset-class diversification. This trend reflects growing demand for cross-border wealth management amid geopolitical uncertainty and market volatility.

The expansion also aligns with broader industry trends, with global financial firms like The Goldman Sachs Group, Inc. GS and Barclays PLC BCS pursuing similar strategies in emerging markets. According to Boston Consulting Group’s Global Wealth Report 2025, the global financial wealth reached a record $305 trillion in 2024, reinforcing the long-term structural opportunity in wealth management.

In line with this trend, GS launched an onshore private wealth management presence in Riyadh, Saudi Arabia, targeting ultra-wealthy clients in October 2025. Earlier, in November 2024, BCS announced plans to establish a new private banking booking center in Singapore by 2026, aimed at expanding its Asia footprint and serving ultra-high-net-worth and global family office clients.

DB Plans to Scale Lombard Lending Capabilities

Alongside relationship manager hiring, Deutsche Bank is sharpening its focus on Lombard lending, a product that allows private banking clients to borrow against their investment portfolios.

The clients are moderately increasing leverage, reflecting growing interest in Lombard lending. Management views Lombard lending as an area of rising demand and intends to further scale capabilities in this segment.

The expansion of Deutsche Bank’s emerging markets franchise complements its Global Hausbank strategy, which prioritizes capital-light, fee-generating businesses such as wealth management. As of Dec. 31, 2025, these businesses contributed nearly 67.5% of total revenues. The bank further targets a net revenue compound annual growth rate (CAGR) of above 5% through 2028, driven by these fee-based, capital-light operations.

By strengthening coverage in high-growth wealth markets and expanding lending solutions for affluent clients, Deutsche Bank is positioning its Private Bank business to contribute more meaningfully to its medium-term revenue growth and return targets through 2028.

Building on this strategic expansion, the bank reaffirmed its target post-tax return on tangible equity above 13% by 2028 and expects the cost/income ratio to decline below 60%. The CET1 capital ratio is also projected to remain within the 13.5%–14% range, supporting sustainable shareholder distributions, including a 60% payout ratio. While incremental investments and higher compensation costs may weigh on near-term earnings, the bank’s diversified deposit base and structural reforms are expected to support steady medium-term growth.

DB’s Price Performance & Zacks Rank

Over the past six months, shares of Deutsche Bank have gained 3.5% on the NYSE compared with the industry’s growth of 15.9%.

Currently, DB carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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