Deutsche Bank aims to dominate German retail banking market

Deutsche Bank wants to dominate German retail banking with a huge capital increase to gain control of Postbank, it said yesterday while stressing it will easily meet new global banking rules.

“We are now about to advance to the champions league of European retail banking,” Deutsche Bank chairman Josef Ackermann told a press conference a day after launching a rights issue worth around €10 billion. The results of an offer to sell one new Deutsche Bank share for every two already owned should be made public on October 6, a statement said.

The money raised would help acquire Postbank shares and make Deutsche Bank “the undisputable leader in Germany’s retail banking business”, Mr Ackermann added.

The German bank also intends to pursue internal growth in China, Europe and India, he noted.

“These are the main regions where we are willing to expand further because we see a lot of potential there,” he said.

Together, Deutsche Bank and Postbank would have 24 million clients in Germany, bolstering a second pillar to complement the former’s global investment banking unit. Deutsche Bank already owns a stake of nearly 30 per cent in Postbank, which has the largest retail network in Europe’s largest retail banking market, and plans to acquire about 21 percent more with an offer of €24-25 per share.

The final amount of that offer will be determined by the German financial regulator SoFFin in a few days, Mr Ackermann said.

“We will pay approximately €6.3 billion,” he added. Deutsche Bank also holds a mandatory exchangeable bond to be converted into an additional Postbank shareholding of 27.4 per cent in 2012.

Meanwhile, Mr Ackermann stressed that the deal would not prevent Deutsche Bank from meeting new international standards for bank capital unveiled Sunday in Basel, Switzerland.