Deutsche Bank Agrees to Mexico Sale Ahead of Earnings Reportby
Deal will close next year, subject to regulatory approvals
Sale had been flagged last year as part of restructuring
Deutsche Bank AG said it agreed to sell its Mexico units to Mexican lender InvestaBank, an exit that is part of Chief Executive Officer John Cryan’s plan to revive the struggling German lender.
The deal was announced ahead of the lender’s third-quarter earnings on Thursday, where investors will look for progress in turning around Europe’s biggest securities firm.
The sale will close in 2017, subject to regulatory approvals, Deutsche Bank said, without disclosing the price. Mexico is a tiny part of the lender’s global business; the bank had 131 employees in the nation, according to its 2015 annual report.
The Frankfurt-based lender’s executives will likely face questions on Thursday on whether plans to cut 9,000 jobs and shrink assets go far enough to lower costs and raise capital levels.
Cryan is trying to reverse a slide in shares that eroded more than 40 percent of the company’s market value this year, amid investor concern about the U.S. Justice Department requesting $14 billion to settle an investigation.
Deutsche Bank said last year that it would be closing operations in 10 countries including Mexico as part of paring back its global business. The InvestaBank deal comes two months after the lender announced the sale of a subsidiary in Argentina.
The units being sold are a bank subsidiary -- Deutsche Bank Mexico, SA Institucion de Banca Multiple -- and a broker dealer, Deutsche Securities, SA de C.V., Casa de Bolsa, Deutsche Bank said.