By Eyk Henning 

Deutsche Bank AG said late Friday it will hive off its mass retail unit Postbank and slash assets at its investment bank as it seeks to boost its profitability and share price.

The executive and supervisory boards of the giant German lender agreed to "deconsolidate Postbank," the bank said in a brief statement Friday night. That means it will either float a majority stake in Postbank on the stock market and/or seek a buyer for the unit.

The move means chief executives Anshu Jain and Juergen Fitschen are unwinding an acquisition orchestrated by their predecessor Josef Ackermann, who decided to acquire Postbank in several steps starting 2008.

The bank also said it would reduce assets in its investment bank while strengthening its transaction banking, asset and wealth management, and own retail activities. "Furthermore, [Deutsche Bank] will increase its investments in digital banking" and rationalize its geographic footprint, " it said without specifying.

Deutsche Bank added it will release first quarter figures on Sunday and provide further details on the new strategy Monday.

Write to Eyk Henning at eyk.henning@wsj.com

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