Deutsche Bank ‘in talks to sell IT unit’ as cost-cutting continues
Deutsche Bank is reportedly in talks to sell a IT services unit to Tata Consulting Services (TCS), one of Asia’s biggest software exporters, as the lender continues a cost-cutting programme.
Talks about the sale of Bonn-based Postbank Systems to TCS are expected to result in a deal for the division by the end of the year, Bloomberg reported.
Selling the IT services division to the Indian firm would help bring Deutsche chief executive Christian Sewing closer to his goal of cutting 18,000 jobs in a bid to slash costs and restore profitability at Germany’s biggest bank.
Postbank Systems has around 1,400 employees and provides IT services to Postbank — Deutsche’s formerly separate retail division.
Deutsche Bank is currently in the process of merging its own IT systems with Postbank’s, as part of a plan that is expected to contribute heavily to Sewing’s goal of cutting €1bn in costs in the lender’s retail operations.
Postbank systems generated €533m in revenue in 2015, its latest available annual report showed.
In July, Deutsche signed a 10-year deal with Google that will see much of its IT systems moved on to the cloud in a bid to overhaul its outdated back-end technology. The agreement forms part of a €13bn technology investment plan the bank plans to implement by 2022.
City PM has contacted Deutsche Bank and TCS for comment.