FRANKFURT, Oct 26 (Reuters) - Deutsche Bank will modernize its Spanish retail operations after failing to find a buyer for the unit, which it put up for sale as part of its overall strategic review.
“We’re looking at options for just improving the operating leverage of that entity and optimizing it,” Chief Executive John Cryan told analysts on a call to discuss third-quarter earnings on Thursday.
“Spain for us has always been an interesting one with a very large infrastructure down there,” he said referring to the roughly 250 branches in the country, adding Deutsche also had a promising digital offering there.
“The two (the branches and the digital ops) are to some extent out of balance right now,” Cryan said. “So we’re looking at options for just improving the operating leverage of that entity and optimizing it.”
Deutsche earlier this year put its Spanish operations up for sale, alongside its Polish and Belgian assets as part of a large strategic overhaul.
People familiar with the matter had said that Deutsche Bank had been trying to fetch 700 million euros ($820 million) for the Spanish assets, a price expectation that bidders such as Abanca had been unwilling to match. ($1 = 0.8534 euros) (Reporting by Arno Schuetze; Editing by Tom Sims)