Deutsche Bank has negotiated settlements with over 80 plaintiffs, who collectively represent nearly 60 percent of the total claims in the protracted litigation regarding the acquisition of Postbank.

Deutsche Bank completed the acquisition of Postbank in 2010, marking a significant milestone in its history with the largest capital increase ever undertaken, yielding gross proceeds of €10.2 billion. At the time of the acquisition, Postbank was recognized as the largest retail bank in Germany. The primary objective of Deutsche Bank’s acquisition was to enhance its presence in the retail banking sector, given that it had predominantly operated as an investment bank.

The two institutions were perceived as complementary, each appealing to distinct customer segments. With two well-established and independent national brands, the acquisition was anticipated to address the diverse banking needs of the population. However, the outcomes did not align with Deutsche Bank’s expectations over the years.

Postbank’s performance lagged behind that of Deutsche Bank’s Private and Commercial Bank (PCB) operations, and it struggled to retain its existing clientele. Consequently, in 2018, Deutsche Bank opted to merge Postbank with its legacy PCB business, resulting in the formation of a new unified entity known as the Bank of Germany.

The settlements are based on an amount of 31 euros per share. The bank estimates that the agreements reached to date will, on average, utilize around 45 percent of the total provisions set aside for the claims. Furthermore, Deutsche Bank projects that this will result in a favorable effect of approximately 430 million euros on its pre-tax profit for the third quarter.

Importantly, a settlement was also achieved with Effecten-Spiegel AG, the first former Postbank investor to challenge the compensation it received for its share when Deutsche Bank presented a formal acquisition proposal in 2010. It took several years for additional former Postbank shareholders to initiate legal actions, which subsequently increased the financial liability for Deutsche Bank.

Effecten-Spiegel asserted a claim of €4.8 million against DB. In a recent filing, it indicated that it anticipates extraordinary income of approximately €8.8 million before taxes for the current fiscal year due to the settlement.