Set as an ambition for last year, the merger will result in cost reduction and refinancing expenses for Deutsche Bank
Deutsche Bank Headquarters in Frankfurt, Germany. (Credit: Deutsche Bank AG.)
German lender Deutsche Bank has completed the merger of DB Privat- und Firmenkundenbank, a provider of commercial banking services, into the group.
The bank said that the merger, which began on 15 May this year, represents an important step in its transformation goals set in 2019. It is also expected to reduce costs, refinance expenses and increase revenues and profits.
Through the merger, DB Privat- und Firmenkunden bank’s clients, staff, balance sheet items and business assets were transferred in full to Deutsche Bank.
DB Privat- und Firmenkundenbank’s merger is also expected to eliminate some of the infrastructure functions and the governance tasks that were retained by both Deutsche Bank and DB Privat- und Firmenkundenbank, that were executed specifically for the respective legal entities.
Furthermore, refinancing and administrative expenses will also be reduced and corporate governance is simplified.
Deutsche Bank president and private bank head Karl von Rohr said: “Today we have completed one of the biggest bank mergers in the history of the Federal Republic of Germany seamlessly and as scheduled.
“Our teams have delivered this project during the corona pandemic while working from home in addition to performing their day-to-day tasks for our clients – further proof of our bank’s ability to perform, even in times of crisis.”
The merger will result in modernisation of Deutsche Bank’s IT
With the merger, foundations for a technological solution can also be laid, the first step of which will be the migration of Postbank’s systems to Deutsche Bank’s IT by 2022.
The German private bank will also implement other measures to comprehensively modernise its IT and process architecture in the coming years.
As a result of the merger, the staff of DB Privat- und Firmenkundenbank will now be transferred to Deutsche Bank, where they will retain their existing employment terms as per statutory provisions.
The bank will now become the authorised employer of all the civil servant personnel of Postbank. Discussions are presently taking place between employee representatives about expected job reductions they will be concluded promptly, the bank said.
Deutsche Bank also said that the merger will not have an impact on DB Privat- und Firmenkundenbank’s clients.
The bank will continue serving the clients through its Deutsche Bank and Postbank brands and all subsidiaries and branches of the former DB Privat- und Firmenkundenbank will continue their operations under Deutsche Bank.