Investment Banking

Deutsche Bank Wavers on Postbank Sale

postbank. Federico Gambarini.dpa
The Postbank HQ in Bonn.
  • Why it matters

    Why it matters

    Deutsche Bank, Germany’s largest bank, urgently needs capital that is tied up in its subsidiary Postbank, but is struggling to find potential buyers due to the problems in Europe’s banking sector.

  • Facts

    Facts

    • The sale or flotation of Postbank was a key component in plans to strengthen Deutsche Bank’s thin capital base.
    • Analysts estimate that Postbank is currently on Deutsche Bank’s books at a value of €4 billion to €4.5 billion.
    • Most believe that significant write-downs would be necessary before a sale or flotation.
  • Audio

    Audio

  • Pdf

Deutsche Bank may backtrack on its plans to sell Postbank if it fails to find any viable buyers. Chief executive John Cryan is desperate to push through a sale and free up the capital currently tied up in the subsidiary for other areas of business. But given the dismal situation in Europe’s banking sector, there are currently no buyers for the Bonn-based retail bank.

Potential suitors are struggling with their own problems and the zero interest-rate policy of the European Central Bank. One manager at the bank suggested the deal may be taken off the table, saying: “If we can’t get a good price, we won’t sell Postbank.”

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