FRANKFURT, Oct. 31 (Xinhua) -- Germany's largest bank, Deutsche Bank, is set to close large number of branches run by Postbank, local German media reported on Tuesday.
Since many of the 550 Postbank branches have failed to make a profit for a long time, Deutsche Bank, which holds a majority stake in Postbank, plans to close 250 branches by mid-2026.
Due to a long-term contract with Deutsche Post, the former owner of Postbank, Deutsche Bank has not been able to close the loss-making branches. However, the closures are now possible under a renegotiated deal.
The new cooperation agreement with Deutsche Post specifies that every third Postbank branch that remains open will transition into exclusive bank branches, discontinuing postal services. This branch format will be implemented in around 100 branches, according to Deutsche Bank.
"Postbank will be developed into a mobile-first bank in the medium term," a Deutsche Bank spokesperson told German newspaper Handelsblatt. Customers will be able to obtain all products via cell phone or tablet, or in the "streamlined branch network", he added.
The number of Deutsche Bank branches will also be trimmed, said Claudio de Sanctis, member of the management board and head of private banking at Deutsche Bank.
Deutsche Bank offered to acquire additional shares of Postbank in 2010, boosting its 30 percent stake in Postbank to more than 50 percent. ■