Deutsche Bank has said it's selling off its stake in China's Hua Xia. Germany's biggest lender indicated the move was in line with its new strategy to withdraw from a number of foreign markets to save money.
Deutsche confirmed Monday it was aiming to sell its stake of nearly 20 percent in Chinese lender Hua Xia for more than 3 billion euros ($3.3 billion) to China-based PICC Property and Casualty Company.
The transaction was still subject to regulatory approvals, including one from the China Banking Regulatory Commission.
Deutsche Bank said the sale would have "a positive financial impact" and boost its capital ratio amid a large-scale restructuring effort at thescandal-ridden German lender.
Focusing on core business segments
Deutsche announced as early as October that massive write-downs on its stake in Hua Xia had contributed to pushing it into the red in the third quarter of 2015.
"We made our first equity investment in Hua Xia back in 2006,"Co-CEO John Cryan
said in a statement. "Now is the right time for us to sell this investment."
A couple of months ago, Cryan had presented his reform plans for the German bank with a view to achieve massive savings over the next couple of years.
Management explicitly mentioned a streamlining of operations in many banking segments, as well as complete withdrawal from 10 nations.
hg/nz (dpa, AFP, Reuters)