Deutsche Bank AG is restructuring its West Asian corporate banking operations to better align with East Asia, driven by a surge in Chinese companies expanding into the region. According to Bloomberg, Deutsche Bank’s revenue from assisting Chinese firms in West Asia has doubled over the past year and is expected to maintain this growth trajectory, according to Ole Matthiessen, head of corporate banking for Asia Pacific.
Matthiessen, who assumed responsibility for the “Middle East and Africa” regions at the end of 2023, explained the strategic shift: “We’ve changed our structure to make sure that those corridors, where we see emerging activities and strong growth, are smoothly managed and resources are put where we need them the most.”
This move places Deutsche Bank alongside rivals like HSBC Holdings Plc and Standard Chartered Plc in capitalising on the increasing economic ties between China and the Persian Gulf states. Trade and investment between these regions have grown, particularly as tensions between the US and China rise. Sovereign wealth funds, such as Mubadala Investment Co., are also seeking greater exposure in China and the rest of East Asia.
“The political alliance between the Middle East and China has an effect,” Matthiessen noted. “There’s a lot of capital investment from the Middle East going into China and Asia Pacific overall.”
Deutsche Bank has seen significant growth in revenue from Chinese companies’ global expansion, particularly in the issuance of panda bonds—yuan-denominated notes by foreign entities in China. This demand is less about lower financing costs and more about localising financing for Chinese operations.
Matthiessen also highlighted rising investment flows into Southeast Asia, particularly Indonesia, where Chinese companies in the “new economy” sectors contribute to about 50 percent of the corporate bank’s growth.
