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Bloomberg
Deutsche Bank AG is set to post a capital gain of more than €300 million ($292 million) in the fourth quarter after completing the sale of its Italian financial promoters network to Zurich Insurance group AG.
The German lender will book the gain as additional revenue in the final quarter of the year.
Deutsche Bank said Monday that it completed the sale of the network, which includes more than €16 billion in assets under management and 1,085 advisers, following a preliminary deal over a year ago. The lender didn’t disclose the
financial terms of the deal.
Under the accord, the partnership between the two institutions in Italy will continue, with Deutsche Bank providing banking products and services to Zurich Bank, and Zurich Italy continuing to distribute its insurance line through Deutsche Bank branches.
Deutsche Bank is in the final months of a turnaround plan unveiled by Chief Executive Officer Christian Sewing a little over three years ago, when he outlined radical job and cost reductions, including exiting some investment banking
activities.
While the CEO has missed several cost targets, he has exceeded revenue expectations, mostly due to trading results far above initial plans.