Deutsche Bank could be considering Argentina move

Germany's Deutsche Bank could be considering returning to Argentina in some capacity, BNamericas has learnt.

Deutsche Bank is an important part of Argentina's banking sector heritage – the lender first set up shop there in 1887 when it opened a branch in Buenos Aires under the name Banco Alemán Transatlático.

The bank announced in 2015 that it was pulling out of the country and others in Latin America as part of a global reorganization following a 6.0bn-euro Q3 loss (US$7.4bn at current exchange rates).

Concerning the report of a potential return to Argentina, a source familiar with the matter told BNamericas: "Deutsche Bank has a long history in Argentina and has remained very active following the footprint rationalization. The bank currently serves Argentine clients from our global hubs in New York, London and elsewhere.

"Our office presence model is organic and changes over time with the wider banking environment."

Last May it was announced that Argentina's central bank had authorized local player Banco Comafi to merge with and absorb Deutsche Bank Argentina, which operated in the wholesale segment.

At the end of November, by assets Comafi was the 19th biggest of the 78 financial institutions reporting to the central bank, with 26.3bn pesos (US$1.30bn). It was also the No. 19 player by loans, with 14.5bn pesos. In terms of deposits, it was ranked 20, with 18.1bn pesos.

Argentina's financial services sector is seen as an attractive one for potential new, or returning, players, mainly on account of the country's strengthening economy and low levels of banking and insurance penetration.

The country's banks tend to be profitable operations.

ALSO READ: The BNamericas Intelligence Series report Argentina's Banking and Insurance Industries in Recovery

In related news, earlier this month Deutsche Bank announced it had bolstered the Americas-focused unit of its wealth management business.

The bank hired Jorge Rodríguez García as head of the Latin America team for Deutsche Bank Wealth Management. Formerly with Credit Suisse and Grupo Sura's asset managment business in Mexico, Rodríguez is based in Geneva. Roberto Teofilo joins the Miami office as a director and relationship manager. Formerly at Citigroup, JP Morgan and Merrill Lynch, Teofilo will help cover ultra-high net worth clients from Brazil. Ricardo Pablos Rodrigues, formerly of Compagnie Bancaire Helvetique, joins as relationship manager for Brazilian clients and Pascal Landrove, who joined Deutsche Bank in 2015 as a managing director and senior relationship manager for Mexico, will continue in this role and also wear the hat of team head for the Miami office.

"These additions confirm Deutsche Bank Wealth Management's commitment to Latin America in general and to the Swiss platform in particular, as it recognizes the importance that Geneva and Miami have in the region," Deutsche Bank said in a statement.