"It's a win-win-win solution!"- Interview with Frank Appel and John Allan
A unique and powerful banking partnership is developing in Germany: Deutsche Bank is taking a major share in Postbank and the companies have signed a far-reaching cooperation agreement. This transaction marks a major step forward in the German banking consolidation, strengthening Germany as a financial center, while guaranteeing job security and continuity. Deutsche Bank’s stake of just below 30 percent gives Postbank a basis for further dynamic growth – and Deutsche Post can keep concentrating on its core business.
DPWN News spoke to Chief Executive Officer Frank Appel and Chief Financial Officer John Allan about the transaction, which significantly changes the German banking landscape.
Mr. Appel, why is Deutsche Post selling 29.75% percent of Postbank’s shares to Deutsche Bank?
Appel: In the past 10 years Postbank has developed very successfully with Deutsche Post as majority owner. Today it’s the leading German retail bank with 14.5 million loyal customers, a position that we are very proud of. Deutsche Post has benefited from this partnership as well as it allowed us to fully leverage the strength of the Group’s branch network.
In order to secure the same kind of growth for both Postbank and Deutsche Post in the future, we took a thorough look at a variety of options during the past months. We are convinced that the agreement with Deutsche Bank is the very best solution for all stakeholders – for Postbank, because they gain a strong new shareholder with an excellent reputation, which stands for continuity and growth; for Deutsche Bank, because of Postbank’s key position in the German retail market; and for Deutsche Post, because we can concentrate mid-term on our core competencies in logistics, express and mail.
Most people had expected Postbank to be sold completely – what made you decide for the two-step model?
Appel: We are very excited that we have found a win-win-win solution with such a growth-oriented structure: Postbank gets a strong new shareholder, and the following steps can be completed smoothly. No one will have to chase any integrations targets and there will be no changes to Postbank’s winning formula. Employees and customers alike won’t feel a difference, except for a wider product range and better service. Deutsche Post now has a clear path to a mid-term exit.
This deal creates additional value for investors, just as we pledged in our Roadmap to Value capital markets program: The proceeds will be a central component for our considerations of returning it to our shareholders and on top we can generate more value out of our logistics and express businesses in the long term.
First Dresdner and Commerzbank – now Deutsche Bank and Postbank: does that herald branch attrition and mass redundancies?
Appel: Absolutely not. What we achieved here is an agreement purely driven by growth – cost cutting is not an issue and shareholders benefit from a strong valuation. Continuity in management and brands goes along with job security for Postbank’s employees. On top of that, both partners envisage substantial revenue growth from future cooperation. These benefits will be there without costly rebranding or transition efforts. With our innovative model we will show that it is possible to consolidate in a different way: without job losses or the mass closure of branches. We are convinced that this partnership will create a new heavyweight in the European banking market and strengthen Germany as a financial center.
What are the advantages for Deutsche Post and Postbank from this sale?
Appel: For Postbank, the new structure means first and foremost planning security. With their unique retail platform, they can now focus fully on exploiting the growth opportunities in a market that is currently undergoing a profound transformation. It is especially positive that branches, jobs and the brand will remain untouched. Also, management and corporate governance will continue unchanged.
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