Dresdner Kleinwort Wasserstein (DrKW), the investment banking operation of German insurer Allianz, is reportedly hoping to boost revenues by prioritising structured products, derivatives, emerging market instruments and added-value foreign exchange products.
Talking to the FT, Steve Bellotti, head of DrKW's capital markets operations, said: "Now is the right time to go on the offensive. We are planning revenue growth of 14% next year and expense growth of 8-9%."
He said it was the bank’s intention to double net income in Germany over the next couple of years by “moving up the value chain” and going on a staff shopping spree to recruit 200-300 new bankers.
The expansion plan follows a few difficult years for DrKW, which experienced what the paper described as a ‘disastrous’ second quarter this year.
Bellotti said he expected the bank to generate profits in excess of its cost of capital from next year which he hoped would prompt the bank’s parent, assurance company Allianz, to allocate more capital to the business.
Over the summer DrKW made a number of hires to boost its global derivatives business unit, created in April 2005.
