Deutsche Bank finally has marked an end of its branch level involvement in Portugal with the sale of its remaining sites to Spain’s Abanca.
The Galician bank already has four branches in Portugal and wants to strengthen its spread at a time when all other banks are reducing branch numbers.
“With this transaction, Deutsche Bank continues to execute the strategy of focusing on its most relevant areas of activity and reducing the complexity of its operation," according to Deutsche Bank’s spokesman.
The completion of the transaction will take while as regulatory approvals are needed, delaying the purchase until the first half of 2019.
Deutsche Bank is hanging on in Portugal with corporate and investment banking services through DB Portugal which serves local and foreign companies, financial institutions, the State and some public entities.
Abanca is buying a credit portfolio of €2,400 million, €1,000 million in deposits and €3,100 million of assets under management.
The Spanish bankers take over the remaining 41 Deutsche Bank branches, mostly in Lisbon and Oporto but it is too early for Abanca to announce what it is going to do with 330 employees and 100 outside agents.
Abanca said it wanted the business to boost its presence in the business and insurance segments.
Abanca in Spain has 640 branches, 4,615 employees and a turnover of €65.53 billion on which it made a net profit of €367 million last year.
Deutsche Bank said that it, "will work in partnership with customers, regulators, employees and other stakeholders to ensure a smooth transition."