The German cooperative banks’ leading institution, DZ Bank, is embarking on an ambitious international expansion strategy, aiming to bolster its global presence and diversify revenue streams. According to Capital Markets Board Member Souad Benkredda, the bank is prioritizing international business as a key element of its long-term strategy.
This year marks the opening of a new representative office in Vietnam, a market identified as crucial for supporting the growth of many of the bank’s clientele. DZ Bank is simultaneously reinforcing its teams within its existing international branches.
The strategic move is designed to position the bank for continued profitability even in a potentially challenging environment of declining interest rates. Currently, approximately ten percent of the bank’s earnings originate from overseas activities, a figure the institution intends to substantially increase by 2030.
To facilitate this expansion, DZ Bank plans to more actively engage with international investors to diversify its refinancing options, hoping to secure more favorable interest rates. Benkredda explained that the process of investor analysis and infrequent borrowing often leads to higher interest charges.
The bank is also increasing its workforce dedicated to international operations. Currently, 260 employees support the bank’s international activities, with plans to expand this number to 330 by 2030.