Chairman of Deutsche Bank Paul Achleitner affirmed that Qatar and Germany have had long-standing and deep economic ties, and there are mutual investments in both countries, stressing that the State of Qatar is acquiring many key roles in the Middle East.
In an exclusive statement to Qatar News Agency (QNA), Achleitner added that the recent visit of the Vice-Chancellor and Federal Minister for Economic Affairs and Climate Action of the Federal Republic of Germany Dr Robert Habeck in Germany was a significant step on the way to increased collaboration between the two countries, adding that the visit of His Highness the Amir Sheikh Tamim bin Hamad al-Thani will certainly deepen this relationship.
"Obviously, we are biased as having major shareholders from Qatar, and we are grateful for their support for the strategic path of Deutsche Bank including the transformation initiated in 2019 and delivered successfully since then by our CEO Christian Sewing and his management team.
We appreciate the long-term view of Qatar shareholders.
In general, the European banking sector is open for long-term investments and has significant upside potential," Chairperson of Deutsche Bank said.
Achleitner revealed that Deutsche Bank achieved its highest quarterly post-tax profit since 2013, and therefore they are to help clients navigate uncertainties, and have done this successfully in all four business divisions, Corporate Bank, Private Bank, Investment Bank and Asset Management, and although management is mindful of the risks in the geopolitical, fiscal, and macroeconomic environment, we believe this momentum positions the bank well for delivery on its 2022 targets.
He added that the correlation between yield on this side of the Atlantic and the other side is very tight.
Therefore, any hike in the US will continue to drive European yields higher, adding that the Fed policy change has resulted in a stronger USD adding to surging European import prices, stressing that the US runaway inflation will force the FED to hike rates very aggressively to at least 3.6% by mid-2023, which in their view is likely to cause a US recession by the end of 2023.
That may also have some spillover slowdown effects in the European economy, Achleitner said.
Achleitner explained that the Covid-19 pandemic is far from over, as the recent lockdowns in China regrettably demonstrate, considering that the economic situation in the current period is characterised by uncertainty, high volatility in the markets and increasing concerns about supply chains, noting that the steadfastness of European banks have held up well against the economic impact of Covid-19 is that stimulus packages helped stabilise Europes economies.
He pointed out that Deutsche Bank has always been part of the solution in the Covid-19 crisis, and has helped clients manage difficult situations, especially at the beginning of the pandemic, with high demand for liquidity and short-term credit, and these changes and the additional flexibility are not temporary.
Regarding the future of work, "we see that rather as an acceleration of an existing trend to shape work environments to fit the needs of our employees. Working from home as part of a hybrid future work model is here to stay for good," Chairperson of Deutsche Bank said.
Chairperson of Deutsche Bank expressed condemnation of Russia's invasion of Ukraine and their support to the German government and its allies in defending democracy and freedom and are committed to help their clients navigate this period of upheaval, and they are supporting our people in Ukraine and their families, adding that the effect of the war on the banking sector remains to be seen.
Indicating that at Deutsche Bank, their exposure to Russia is very limited and has been reduced further during the past weeks.
However, this is a very volatile situation that adds uncertainty to the markets and for the banking industry, he added.
With regards to the sanctions against Russian assets, the Chairperson of Deutsche Bank said that he supports the decisions of the German government and its allies and are consistently implementing the sanctions.
Regarding the talk in Europe on the need to stop importing Russian gas, he noted that the EU and its member states already pointed to existing contracts and made clear that they do not intend to pay for in roubles, the question is different whether the EU will cut off Russian gas supply as a next step of the sanctions regime.
This is a political decision that is influenced by a multitude of different aspects, moral and geopolitical considerations as well as thinking about the economic impact and they fully trust that the German government together with its allies will take appropriate decisions, Achleitner said.
Deutsche Bank is one of the world's leading banks in some large global transactions through its global and local branch network, and the bank in which Qatar holds a 6.1% stake in many regional awards in recognition of its achievements in the field of banking investment and Islamic finance.
The bank is headquartered in Frankfurt, Germany, with 80,000 employees in 72 countries.
It has a wide presence in Europe, the Americas, Asia, and emerging markets.