Chief Executive Frank Strauss has strongly backed the sale of Postbank amid reports that parent company Deutsche Bank may scrap plans to spin off the subsidiary.
“I am convinced that Postbank will be successful alone,” Mr. Strauss told Handelsblatt. “We have 14 million customers and are on track to cover our capital costs, which is unusual in Germany.”
Deutsche Bank decided in April 2015 to spin off Postbank, preferably through an initial public offering. Volatile market conditions in 2016, however, led it to postpone plans to sell the subsidiary.
According to Handelsblatt sources in the financial industry, Deutsche Bank Chief Executive John Cryan is now considering whether or not to scrap the sale altogether and fully integrate Postbank instead.
Mr. Strauss, however, dismissed those reports and pointed to Deutsche’s April 2015 decision.
“There was a very clearly communicated decision by Deutsche Bank that it wants to separate from Postbank,” Mr. Strauss said. “This decision has been reaffirmed every quarter and we are focused on implementing it.”
The chief executive expressed optimism that market conditions for an IPO would improve in 2017.
“The market was exceptionally difficult in 2016, but in recent months there have been a series of indicators that the market is improving,” Mr. Strauss said.