Deutsche Bank is planning to beef up significantly its energy investment banking group over the next several months. Observers who have spoken to Deutsche Bank say the firm is close to making a hire at the senior director or managing director level imminently as a part of its initial expansion. It has approximately 14 managing directors in its energy and utilities unit and ultimately wants to build up to 20 or 21 over the near term, followers say.

The firm had been running relatively slim over the past year in order to juice more profits, but is ready to grow since it has successfully participated in major sector financings, such as Mirant's $2.35 billion and Calpine's $2 billion debtor-in-possession loan. "We've solved for high profitability and now we want to solve for mass," says one executive familiar with its strategy. Michael Johnson runs the group in New York. A spokeswoman for Deutsche Bank did not return a call for comment.

Deutsche Bank AG has stated that its fourth-quarter net profit more than tripled because of stronger revenue from its corporate and investment banking division.