FRANKFURT (Reuters) - Deutsche Bank (DBKGn.DE) has named the chief of its Postbank unit to its management board as the lender further integrates its retail arm in a commitment to its home market.
Frank Strauss, Postbank CEO, will join Deutsche Bank’s board from Sept. 1 as co-head of private and commercial banking along with current board member Christian Sewing, Deutsche said on Tuesday.
Germany’s largest bank acquired Postbank, once part of the nation’s postal service, as Europe’s debt crisis was unfolding and then unsuccessfully tried to sell it.
Deutsche Bank, in an about-face and in a renewed commitment to the German domestic market, opted in March to instead integrate Postbank. At the time, the bank was reeling from hefty fines for management missteps involving U.S. mortgage securities and Russian trading schemes.
”Our integrated Private & Commercial Bank will be a crucial factor for our success, especially in our home market of Germany,” Deutsche Bank Chief Executive Officer John Cryan said in a statement.
Postbank is Germany’s largest retail bank. It has been under pressure as official interest rates remain low, forcing it to impose fees for previously free customer accounts. But Postbank has also served as a counterbalance to Deutsche Bank’s volatile investment bank.
“Together with Christian Sewing, Frank Strauss will ensure that the upcoming merger will combine the best of both worlds,” said Paul Achleitner, chairman of Deutsche Bank’s supervisory board.
Strauss initially joined Deutsche Bank in 1995. He joined the management board of Postbank in 2011 and has been CEO since 2012.
Reporting by Tom Sims; Editing by Maria Sheahan