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Deutsche Bank CEO Repeats Interest In Retail Bkg Buys

Posted by retailigence on September 11, 2008

FRANKFURT -(Dow Jones)- Deutsche Bank AG (DB) continues to be interested in acquisitions in retail banking and Deutsche Postbank AG (DPB.XE) would be a strategic fit, Chief ExecutiveJosef Ackermann said Wednesday. However, the bank will continue to show “price discipline” regarding acquisitions, Ackermann emphasized. “We will expand retail banking in Germany, Italy and Spain … and we will also boost our efficiency in the business segment,” Ackermann said, adding that the bank aims to substantially increase the profit contribution from retail banking.

Germany’s largest bank by market capitalization is open for retail banking acquisitions, but “with discipline,” Ackermann said. “An acquisition must be a strategic fit and create value for shareholders,” Ackermann said. Ackermann said “Postbank would be a strategic fit” in many ways, due to its strong position in the German retail market. However, he emphasized that Deutsche Bank isn’t willing to pay any price for an acquisition, as the recent sale of Citigroup Inc’s (C) German retail bank to French Credit Mutuel shows.

“Citibank would have been desirable, we were among idders,” Ackermann said. He said that Deutsche Bankbid EUR4 billion for Citibank Privatkunden AG & Co KGaA, which was sold for around EUR4.9 billion to Credit Mutuel this summer. “We couldn’t match that,” he said. “We don’t need to make an acquisition to show that we can make acquisitions,” Ackermann said. Ackermann declined to comment specifically on whether Deutsche Bank could also be interested in buying a stake in Postbank, rather than buying the entire bank.

Deutsche Post World Net AG (DPW.XE) is examining options for its 50% plus-one- share stake in Postbank. A decision will be made at a supervisory board meeting Friday, and Deutsche Bank appears to be the frontrunner, people familiar with the matter have told Dow Jones Newswires. Ackermann only said that, in general, buying a stake in another company limits the strategic influence the buyer has, but also requires less capital. He said he very much welcomes the tie-up of Commerzbank AG (CBK.XE) and Dresdner Bank, which Commerzbank bought from Allianz SE (AZ) for around EUR9.8 billion in a two-step transaction announced last week.

“That’s a good signal for Germany as a financial center, which needs banking consolidation,” Ackermann said. Deutsche Bank wants to expand business areas with stable revenues and is also “open for smaller, add-on acquisitions in transaction banking,” Ackermann said.

source :-comscore

Contributed by :- Vipin Rawat


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