Deutsche Bank (XETRA: DBKGn.DE / NYSE: DB) and the leading process outsourcing and back office service provider Xchanging have signed a contract to further develop the european transaction bank ag (etb). Xchanging will receive all voting rights and assume a 51 per cent stake in etb, previously a wholly-owned subsidiary of Deutsche Bank. The operational management of the securities, funds and derivatives processing specialist etb will be transferred to Xchanging. In return, Xchanging will invest € 40 million in processes, services and technology in etb and capitalise on its neutral status in the market to win new business.
Hermann-Josef Lamberti, Member of the Board of Managing Directors and COO of Deutsche Bank said: “This transaction allows Deutsche Bank to continue in its strategic objective of focussing on core businesses while also benefiting from the resulting increases in operational efficiency. At the same time the partnership offers Deutsche Bank the opportunity to participate in the favorable economics arising from the consolidation in the transaction processing market."
etb currently processes up to 2.1 million transactions a day at peak times and has already captured a significant position in the German transaction banking market. It has a market share of around 12 per cent based on German securities transactions settled at the German stock exchange.
By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which we derive a substantial portion of our trading revenues; potential defaults of borrowers or trading counterparties; the reliability of our risk management policies, procedures and methods; and other risks referenced in our filings with the U.S. Securities and Exchange Commission. Such factors are described in detail in our SEC Form 20-F of 25 March 2004 in the section "Risk Factors." Copies of this document are readily available upon request or can be downloaded from www.deutsche-bank.com/ir.