German banking major Deutsche Bank’s supervisory board is in favor of spinning off retail banking unit as part of its planned restructuring to meet capital requirements, Reuters reported, citing unidentified sources.
The report reveals that the bank’s supervisory board was briefed on three restructuring model by the management board at a meeting and favors one in which Deutsche Postbank and other consumer businesses would be grouped and spun off as a separate public company.
"The retail banking operations will suffer setbacks regardless of which model," Reuters quoted a source as saying.
Abandoning retail will transform Deutsche into an investment and merchant bank aimed at companies, capital markets and investors, similar to Goldman Sachs.
However, no decisions have been taken and are not expected to be finalised until the end of April, the source said.
Even as rising capital requirements hurt the bank’s profitability, it opted to keep a full-fledged investment bank and consumer-lending unit since Anshu Jain and Juergen Fitschen took over as Co-CEOs in 2012.
The lender is completing a months-long strategic review to determine where it needs to trim operations to boost returns.