29.75 percent stake in Deutsche Postbank – with an option to buy
another 18 percent before 2011 and first refusal on the remaining
52.25 percent (see RBI 599) – Deutsche Bank has announced
additional plans for its own retail banking business in Germany,
Italy and Poland to 2012.
The group is planning to open 400 branches across Europe over
the next three years, 150 in Germany. It is also looking to build
what it calls a “competitive European consumer banking franchise”.
Deutsche has targeted a total of 18 million customers within its
Private & Business Clients (PBC) unit by 2012, and intends to
increase divisional income before tax from €1.1 billion ($1.5
billion) in 2007 to €2.0 billion over the period.
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To help achieve its targets, Deutsche’s PBC unit will create
2,500 new advisory positions in Germany and Europe while cutting
the number of back-office jobs by 1,100.
Rainer Neske, head of the PBC division, said: “We will
strengthen our market leadership in our German market, strongly
expand our European business and invest in our advisory activities.
We are creating the basis for sustainable and profitable growth. We
want to be the best bank with the best product and service offering
in each of our locations.”
He added the new partnership with Postbank will also help boost
growth. Deutsche Bank has 14 million private and business banking
clients (9.7 million in Germany) and Postbank has 14.5 million
clients in Germany, and both have agreed to cooperate in several
areas including the distribution of home finance and investment
products.
The €9.8 billion acquisition of Dresdner Bank by Commerzbank in
mid-September, Citigroup’s €4.9 billion sale of its German business
to France’s Crédit Mutuel and Santander’s acquisition of GE Money’s
German operations back in March, have transformed Germany’s
consumer banking industry in the space of six months. But, despite
the consolidation, all the key commercial players have a battle on
their hands to wrench Germans away from the safety of the savings
banks (Sparkassen) and co-operatives that, together,
control 60 percent of the country’s retail banking market and boast
over 17,000 branches.
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