Deutsche Bank buys Garanti Bank's custody operations
05 July 2007 | 1713 views | 0
Source: Deutsche Bank
Deutsche Bank AG (XETRA: DBKGn.DE / NYSE: DB) and Türkiye Garanti Bankasi A.S. (Garanti Bank) today announced that Deutsche Bank has bought the institutional cross-border custody business of Garanti Bank.
The transaction has already been closed.
The acquisition encompasses the Turkish custody and sub-custody services provided by Garanti Bank to non-resident financial institutions including institutional investors. These services include clearing and settlement of Turkish securities, safekeeping, asset servicing and tax services, as well as associated Turkish Lira cash and liquidity management services. Assets under custody of more than Turkish Lira 25 billion (approximately € 14 billion) are within the scope of the transaction. As part of the acquisition, Deutsche Bank intends to retain selected Garanti Bank staff to ensure continuity of the high level of service enjoyed by customers to date, and to integrate these staff into the existing Deutsche Bank Domestic Custody Services unit in Turkey.
Deutsche Bank and Garanti Bank will make every effort to ensure that the transfer takes place as smoothly as possible. The transfer is expected to be completed by April 2008.
Werner Steinmüller, Head of Deutsche Bank's Global Transaction Banking division, said: "Turkey is an important growth market for Deutsche Bank and we are delighted to acquire Garanti Bank's consistently top-rated custody franchise. We welcome our new clients and we will work hard to ensure that the high level of service that they have enjoyed with Garanti Bank continues at Deutsche Bank. Since the launch of Deutsche Bank's custody business in Turkey in 2005, we have established a strong local market presence which will be complemented by this transaction. It confirms our continued commitment to growing the sub-custody business world wide."
"We would like to thank our custody clients for the longstanding relationship we have enjoyed with them over the years," said Ergun Ozen, Chief Executive Officer of Garanti Bank. "Given Deutsche Bank's financial standing, global footprint and commitment to growing its Domestic Custody business, we are confident that they will gain access to a broader range off custody services and markets without compromising on service quality or reliability."