Deutsche bank acquired Postbank in 2010. To complete the acquisition, Deutsche Bank carried out the largest capital increase in its history with gross proceeds of €10.2 billion At the time Postbank was acquired, it was the largest retail bank in Germany. The primary motive behind Deutsche Bank's move was to increase its foothold in the retail banking operations, as Deutsche Bank was primarily an investment bank.Deutsche Bank and Postbank were seen as complementary banks as they attracted different client groupsWith two independent and ideally established nationwide brands, the acquisition was expected to cater to the banking needs of all groups of people.
However, things have not turned out the way Deutsche bank expected over the years. Postbank has under-performed the bank's Private and Commercial Bank (PCB) operations. Moreover, it failed to retain its existing clients. As a result, Deutsche Bank decided to merge Postbank with its legacy PCB business to create a new single entity 'Bank of Germany' in 2018.
In this dashboard we analyse the pros and cons of Deutsche Bank's move to acquire Postbank.
Note: We have included historical data only till 2017, as Deutsche Bank stopped reporting Postbank revenues separately in 2018.