Spain’s bank Abanca has purchased the Portuguese subsidiary of Deutsche Bank for an undisclosed amount.
The purchase, still pending of regulatory approval, is expected to close during the first half of 2019 enabling Abanca to increase its international business as well as to strengthen its presence in Portugal.
Abanca – which currently has four offices in Portugal – is expected to improve its interest margin by 5% and its commission income by 20%.
Following the transaction Deutsche Bank and Abanca will keep commercial collaborations in Portugal, Abanca said.
Deutsche Bank’s Portuguese arm, led by Bernardo Meyrelles, has a gross loan portfolio of €2.4bn, €1bn in deposits, and €3.1bn off-balance sheet, all figures that summed up amount to a business valued in €6.5bn. It has 41 commercial offices based in Lisbon and Porto, of which four are investment centres and two private banking offices.
Deutsche Bank PCC Portugal, which started operating in the Portuguese market in 1978 as a private bank, primarily focuses now on private banking clients.