Deutsche Bank Is Said to Drop Spanish Unit Sale Over Price

LAGOS (Capital Markets in Africa) – Deutsche Bank AG said on Monday that it will keep its Spanish retail operation, dropping plans for a potential sale to shore up capital.

“To end all speculations, we confirm that we remain committed to our successful and profitable business in Spain,” a Deutsche Bank spokeswoman said in an emailed statement.

The Frankfurt-based bank had planned to sell the business but didn’t get the price it wanted, according to a person briefed on the matter. The bank decided to keep it now that the group has a capital level it considers comfortable, said the person, asking not to be identified because the information is private.

Chief Executive Officer John Cryan said in March that he was seeking to raise 2 billion euros ($2.4 billion) by selling parts of the bank, most notably a minority stake in its asset management division. The bank is also trying to sell its Polish retail operations, people familiar with its plans said previously.

Deutsche Bank has more than 220 retail branches and 650,000 clients in Spain, according data provided by the spokeswoman. The bank’s overall Spanish operations, which also includes corporate banking, had 2,542 employees and generated 513 million euros in revenue last year, according to the bank’s annual report.

The Spanish newspaper Expansion earlier reported that Deutsche Bank had dropped its effort to sell its Spanish retail operations.

Source: Bloomberg Business News