Deutsche Bank has focused on the USA – nothing less than the "toughest market in the world," as Ram Nayak, co-head of Deutsche Bank's investment bank, describes it. The goal is to significantly expand the fixed-income business in the coming years and strengthen the bank's presence in the region.

20 percent more revenue by 2027" – a declaration of war

Since the financial crisis, Deutsche Bank has experienced a turbulent decade, but now the German credit giant is repositioning itself with a clear growth strategy. Between 2019 and 2023, the fixed-income division recorded a worldwide revenue increase of an impressive 45 percent to around 8 billion euros. In Europe and Asia, the bank has long secured a top 3 position – but in the USA, it is currently only in the middle of the field.

We have fixed Asia and are among the top 3 there. We have fixed Europe and are also among the top 3. It is America where we are lagging behind," Nayak openly admits. Nevertheless, he sees enormous potential: "Can I imagine 20 percent revenue growth from 2023 to 2027? Absolutely – and by far the biggest driver will be America.

New Momentum Through Targeted Reinforcement

That these ambitions are more than just empty words is demonstrated by Deutsche Bank's personnel policy. In the past three years, more than 600 new employees have been hired in the Americas region, including many at the highest levels - such as Managing Directors or Directors. The goal: to bring expertise and experience into the house to assert itself in an extremely competitive market.

I don't have to be in the top 3 in the USA," explains Nayak. "It's enough to establish a clear top-5 position to significantly increase our market share.

Volatility as a Double-Edged Sword

Despite the focused growth strategy, Deutsche Bank's dependence on its fixed-income business remains a challenge. This segment currently accounts for over 80 percent of the investment bank's total revenues. This is both a blessing and a curse: on the one hand, the business provides a solid foundation, but on the other hand, it carries the risk of significant fluctuations and high capital requirements.

To counteract this dependency, the bank is trying to expand its advisory activities. However, success in this area has so far fallen short of expectations.

A Long Road to the Top

Why is it so difficult for Deutsche Bank to gain ground in the USA?

The whole game for me is to take this dominant position in Europe and Asia and replicate it in the USA," he explains. It's not about capturing the top spot – already a solid place among the top 5 would be a tremendous progress.

Christian Sewing's Big Plan

The foray into the American market is part of a comprehensive strategy implemented under CEO Christian Sewing since 2018. Sewing, who led the company through a radical restructuring, made the bold decision at the time to withdraw from stock trading and instead focus on fixed-income securities.

This move is now paying off, at least in Europe and Asia. However, whether Deutsche Bank can achieve the same success in the USA remains to be seen. The next few years will show whether the path through the toughest market in the world is worth it – or whether Deutsche Bank's ambitions will falter halfway.