Deutsche Bank bets on FDI for revenue
Deutsche Bank Thailand targets double-digit revenue growth this year supported by higher foreign direct investment (FDI) in Thailand and other Asean countries as foreign investors prepare for the post-pandemic period.
Large global corporates are searching for new production bases and investment opportunities, with Asean countries targeted among the key investment destinations because of their economic growth potential.
For this year, the aggregate GDP growth rate for Asian economies is expected to expand by two times compared with GDP growth in other regions, despite the persistent pandemic, said Alexander von zur Muehlen, chief executive for Asia-Pacific and member of the management board of Deutsche Bank AG.
Pimolpa Suntichok, managing director for Deutsche Bank Thailand, said foreign investors have been searching for opportunities in Asean countries, including in Thailand and its Eastern Economic Corridor project when the country reopens.
"We expect FDI moving into Thailand will gradually improve in the second half, in line with the country's reopening plan, while Thailand's tourism is expected to improve in the fourth quarter, continuing into next year. With this scenario, the bank forecasts Thailand's GDP growth at 3.8% this year," said Mrs Pimolpa.
An economic recovery and positive projection on FDI inflows would facilitate the bank's business expansion plan. Deutsche Bank targets total revenue growth of 10-15% for 2021.
Deutsche Bank Thailand is offering onshore foreign exchange hedging for foreign corporates under the Bank of Thailand's new non-resident qualified company regulations, with documentary relaxation after the central bank implemented the new regulations on Jan 5, 2021.
The easing rules should lead to more opportunities in this business segment and Deutsche Bank expects 15% growth of its foreign exchange business this year.
Although the pandemic is still a key challenge for operations this year, it is leading to business adjustment and new opportunities, said Mrs Pimolpa.
The bank is prepared to serve all customers, both local firms and multinational corporates, in the post-pandemic period.
Deutsche Bank Thailand supports local clients investing abroad to explore greater opportunities in line with the global economic recovery and improving external demand. Regional mergers and acquisitions are another opportunity for Thai corporates.