The DZ Bank, Germany’s leading cooperative and Raiffeisen banking institution, is embarking on a significant international expansion strategy. According to Capital Markets Board Member Souad Benkredda, the bank views broadening its overseas operations as a core component of its future growth plans.
This year will see the establishment of a new representative office in Vietnam, which Benkredda identified as a key growth market for the bank’s clientele. Alongside the new office, the DZ Bank is bolstering its teams at existing international locations.
The move is designed to position the bank for long-term profitability, particularly anticipating a potential decline in interest rates and an increasingly challenging banking landscape. Currently, approximately ten percent of the DZ Bank’s earnings originate from international activities, a figure the bank aims to substantially increase by 2030.
To support this expansion, the DZ Bank is also planning to significantly increase its international workforce, growing from a current 260 employees to 330 by 2030.
Furthermore, the bank intends to pursue more frequent and regular refinancing through foreign investors, diversifying its funding sources and potentially securing more favorable interest rates. Benkredda noted that the additional scrutiny from unfamiliar investors can lead to higher interest charges, a factor the bank hopes to mitigate through increased, ongoing engagement.
