Deutsche Bank (DBK) AG helped to trigger a 24 percent drop in Malta’s annual foreign direct investment figures after it sold assets held at its local unit.
The sale was “a reflection of us reducing legacy, capital-intensive assets that had been administered partly in Malta and are not core to our strategy,” Kathryn Hanes, a spokeswoman for the Frankfurt-based lender, said by e-mail today. She declined to provide further information on the operations sold.
Foreign direct investment in Malta fell to 9.6 billion euros ($12.7 billion) at the end of December from 12.6 billion euros in the year-earlier period, the Valletta-based National Statistics Office said in a statement on its website on Aug. 25. Financial companies account for 71 percent of the total, the statistics office said.
“In 2013 Malta experienced a significant positive turnaround of inward foreign direct investment in all its industrial and services sectors except the banking sector, where the new banking regulations are having enormous effects on their inflows and outflows of equity capital,” Finance Minister Edward Scicluna said by e-mail.
Deutsche Bank cut assets at its Non Core Operations Unit by 11 percent to 48.5 billion euros in the first six months of this year. The division has had one of the best performances “on the Street,” Chief Financial Officer Stefan Krause told analysts on a conference call on July 29.
Malta’s economy grew 2.9 percent in the three months through June from the same period a year earlier, the country’s Finance Ministry said in a statement on its website today.
To contact the editors responsible for this story: Elisa Martinuzzi at email@example.com Edward Evans, Frank Connelly