Deutsche Bank to sell Postbank

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Deutsche Bank acquired Postbank in 2008. Photo: DPA

Germany's biggest lender Deutsche Bank announced late Friday it was seeking to sell its Postbank subsidiary as part of a revamp to improve profitability.

"The bank... will deconsolidate Postbank," a statement said, adding that it was aiming "to achieve greater efficiency and a more robust control environment", but gave no further details.

The sale of Postbank -- which Deutsche Bank acquired in 2008 – is part of a new strategy to be unveiled Monday as the bank struggles to confront the challenges of increased financial sector regulation and the low interest rate environment.

Postbank offers retail banking services from German post offices. Deutsche Bank’s acquisition of it marked a strategy of serving residents of small German towns as well as hedge funds on Wall Street.

The spin-off is a retreat from that ambition.

Friday's statement also said it would issue its first quarter results on Sunday, several days ahead of schedule.

Postbank, a former state-owned unit of the German postal group, has around 14 million customers and posted a net profit of 278 million euros ($302 million) last year. It is headquartered in the western city of Bonn and has a workforce of around 9,800.