Wanda Dismisses Report It Plans to Buy Deutsche Postbank
Yicai Global
/SOURCE : Yicai
Wanda Dismisses Report It Plans to Buy Deutsche Postbank

(Yicai Global) Feb. 13 -- Dalian Wanda Group Co., chaired by China's richest man Wang Jianlin, denied it plans to buy Deutsche Postbank AG after the Financial Times said the Chinese company is considering buying local financial institutions in Europe, including the unit of Deutsche Bank AG.

Reportedly still in the early stages of its search, Wanda today said the report about one of Germany's largest banks is false and the parties are not in contact.

Low interest rates and state-backed competition have led to poor performance at Deutsche Postbank, and Deutsche Bank hopes to sell it. Frankfurt-based Deutsche Bank hopes to raise EUR6 billion (USD6.4 billion) from the sale, the Financial Times said, citing a person familiar with the matter. A purchase of European financial assets would surprise some people in the industry, as market observers consider Wanda as inexperienced, the Financial Times noted.

Earlier this month, Deutsche Bank posted a net loss of EUR1.9 billion for the fourth quarter last year, an improvement on a EUR2.1 billion loss in same period a year earlier, but worse than the anticipated EUR1.32 billion loss. It suffered a net loss of EUR1.4 billion in 2016, less than the previous year's net loss of EUR6.8 billion.

Deutsche Bank said it planned to increase its core capital adequacy ratio to at least 12.5 percent by the end of next year. If Deutsche Postbank is sold, Deutsche Bank may keep the retail banking sectors of its own brand and focus on such core businesses as cash, asset and wealth management.

In July 2015, Wanda Group founded Wanda Financial Group, which is managed by Wang Jianlin, with CNY10 billion (USD1.5 billion). The financial group's CYN21.35 billion of revenue last year was 128 percent of its planned income for the year.

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