Sao Paulo: Deutsche Bank AG agreed to sell its subsidiary in Argentina to Buenos Aires-based Banco Comafi SA as it scales back operations in the region.
The transaction is expected to be completed in the first half of 2017 subject to regulatory approval, the German bank said Friday in a statement. Terms of the deal weren’t disclosed.
The sale is part of Deutsche Bank’s “footprint rationalisation” strategy, the company said, adding that it will continue to serve its clients in Argentina from global and regional hubs. The Argentinian unit has about 86 workers, according to the bank’s annual report.
Deutsche Bank is exiting Latin American countries including Argentina and Mexico and cut about half its employees in Brazil earlier this year as it moves trading elsewhere. The bank had 334 employees in Brazil as of December 2014.
The German lender said in October that it planned to eliminate about 26,000 jobs worldwide by 2018 as part of an overhaul aimed at improving returns. In addition to Argentina and Mexico, the Frankfurt-based bank also intends to shut operations in Chile, Peru and Uruguay. Those five nations had a total of 269 employees, according to the firm’s 2014 financial statements.
Banco Comafi ranks 19th by assets in Argentina with about $1.1 billion and has $103 million in equity, according to central bank of Argentina figures.
