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Germany's Postbank sees lower earnings on split from Deutsche Bank
[FRANKFURT] Deutsche Bank's retail unit Postbank expects its annual adjusted pretax earnings to fall by at least 100 million euros (S$152.77 million) this year, among other due to costs related to the separation from its parent, Postbank said on Wednesday.
Deutsche Bank plans to sell or list Postbank by the end of next year as it takes the axe to its balance sheet to comply with new bank rules.
"With the preparation of our structural independence we are targeting the next step in our corporate history," Postbank Chief Executive Frank Strauss said in a statement.
Last year, the bank saw its adjusted pretax earnings rise 9.6 per cent to 522 million euros. It increased its core tier 1 capital ratio to 11.4 from 10.5 per cent and its pretax return on equity to 8.8 from 6.9 per cent.
In preparation for its standalone future, Postbank, which has total assets of 151 billion euros and 5.2 million current accounts of private customers, has expanded its board by an executive looking after corporates and markets, Postbank said.