Deutsche Bank Plans Israel Wealth Management, Trading Hires
Deutsche Bank Plans Wealth Management, Trading Hires in Israel
(Bloomberg) -- Deutsche Bank AG is planning to expand in Israel as a surge in technology investment helps drive the economy’s rebound from the pandemic.
Germany’s largest lender expects to hire four bankers this year across its key businesses of wealth management, investment banking, corporate operations and institutional trading, country head Doron Averbuch said in an interview. That would take its staff to 20 people, double the number compared to when he started his role in February last year.
Israel’s economy expanded 8.1% last year, driven in part by the country’s tech industry that drew in record amounts of cash and catapulted dozens of startups into unicorns. A banner year of tech exits minted a new class of wealthy entrepreneurs and software coders, and also made the shekel a top performing currency last year.
“When I joined the bank here in Israel, it was in a relatively defensive position. Now we are much more on the offensive,” Averbuch said in an interview in Tel Aviv. “The fact that I need to hire more people just tells you that the business is growing significantly.”
Deutsche Bank’s activity in Israel had declined in parallel with the management reshuffling that roiled the bank in previous years before the arrival of current chief executive officer Christian Sewing. “But part of the reason I’m here is to restart, renew, refocus and rebuild the business in Israel,” Averbuch said.
The lender was the sole underwriter of loans to Azrieli Group Ltd., helping to finance the Israeli real estate company’s 2.8 billion shekels ($872 million) purchase of a Norwegian data center business.
Deutsche Bank is also planning to soon offer trading of local fixed income, interest rates and foreign exchange to both Israeli and foreign institutional clients.
The pullback in global tech stocks over recent months has prompted concern that Israel will not escape the slowdown. Israeli tech investments larger than $20 million have dropped by about half since the start of the year, although “it remains to be seen” whether the hit to tech shares will have a lasting impact on the industry, according to a recent report by IVC Research Center.
Deutsche Bank “is very keen on the country,” Averbuch said. “You wouldn’t have seen trading activity, for example, coming online if there was no definite understanding that this would not be interesting. Setting up requires investments and you’re only going to do it if you expect to see the benefit of it.”
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