Deutsche Bank has sold its second-biggest bank in Europe, the world’s second-most valuable bank, the bank announced Monday.
The move to sell a second-place bank and its stake in a second, much smaller bank in eastern Europe will boost Deutsche Bank’s capital position to a record $16.2 trillion, the European Central Bank said in a statement.
The sale will give Deutsche Bank the ability to invest and scale up in areas that have historically been difficult for banks, such as retail lending, it said.
The bank is selling the second largest bank in Germany, the fourth-largest in Austria and the fifth-largest-rated bank in Finland.
It will become the largest bank to sell assets in Europe.
“The transaction strengthens our position in a region where we are now a global leader,” said Jens Stoltenberg, chairman and chief executive of the bank.
“The Deutsche Bank Group is poised to become a global player in the emerging and emerging markets.
We are very proud to have a strong position in the region and look forward to our continued investment.”
Deutsche Bank is also selling its stake of the $2.5 billion U.S. branch of First Tennessee Bank, which was acquired by the bank in 2015.
The deal, valued at about $1.6 billion, is expected to close in the second half of 2019.
The bank said the acquisition was made with a view to providing financial services for customers and is expected in the coming months.
“We are pleased to have secured such a strong investment from First Tennessee and look to continue to grow our banking services in the U.K. and across Europe,” Stolstenberg said in the statement.
“The Deutsche Group is an innovative, globally driven company that is focused on the future and that is what will continue to drive the growth of the company and our business in the years to come,” he said.