D.Bank says would look at Citigroup German ops

FRANKFURT (Reuters) - Germany's Deutsche Bank (DBKGn.DE) would look at the German retail operations of U.S. bank Citigroup Inc (C.N) if they were for sale, the head of Deutsche's Germany business said on Friday.

Asked by reporters on the sidelines of a banking conference if Deutsche Bank would consider buying Citigroup's German retail business, Juergen Fitschen said: "We first have to see if it is for sale, and if it is, then yes."

Fitschen later sought to play down the degree of enthusiasm for any deal, noting that Deutsche had not been asked to look at the unit.

"If asked if we would be interested in looking at it, the answer is 'yes'."

Reuters reported earlier this month, citing sources familiar with the matter, that Citigroup was considering a sale of its German retail operations.

The Financial Times Deutschland newspaper reported on Friday that Deutsche was considering bidding for parts of the European business of Citigroup.

Deutsche's strategy department was preparing for a possible auction as Citigroup chief Vikram Pandit was reviewing the company's business in Germany, the paper reported.

Citigroup declined to comment on the report.

The head of Citibank, Citigroup's retail business in Germany, had said on Thursday that Pandit's global strategic review was expected to be completed in early May but declined to comment on prospects for a sale of the unit.

Retail banking remains difficult in Germany's fragmented and low-margin market, with acquisitions seen as a rare opportunity to gain market share.

Deutsche Bank has already said it would examine the business of Germany's biggest retail bank, Postbank (DPBGn.DE), which is also expected to be sold by its majority shareholder, Deutsche Post (DPWGn.DE).

Citibank's consumer lending busines must compete with several domestic players, including Deutsche Bank, while powerful foreign groups like Santander (SAN.MC) and Fortis (FOR.BR) have also pushed into the market.

Santander declined to comment on whether it would be interested in Citi's German retail operations.

(Reporting by Jonathan Gould; Editing by David Cowell)