Deutsche Bank may be required to make a back payment to former shareholders 14 years after the acquisition of Postbank. On Friday, the Higher Regional Court of Cologne intimated that the price paid might have been too low. Subsequently, Deutsche Bank announced plans to set aside provisions in the second quarter. The affected Postbank shareholders could be entitled to a sum of up to 1.3 billion euros, including interest accrued since 2010.

This legal dispute, which has been ongoing for over a decade, was sparked by Deutsche Bank's offer of 25 euros per share, which some shareholders considered too low. The plaintiffs argue that a mandatory offer should have been made two years before the formal acquisition because Deutsche Bank had then acquired 29.75 percent of Postbank's shares from Deutsche Post – at 57.25 euros per share.

The Deutsche Bank had consciously kept these shares below the 30 percent threshold, at which a mandatory offer to all shareholders becomes required. The core question of the court proceedings revolves around Deutsche Bank's access to the remaining shares of the Post before the official takeover year 2010.

Despite Deutsche Bank's continued firm rejection of the claimant's demands, it has not yet made any provisions for this legal dispute, as the lawsuits had been dismissed twice before by the Higher Regional Court. However, after the Federal Court of Justice referred the case back to Cologne in December 2022, the tide may now turn.

The Amount of the Provision to Be Formed Is Not Yet Determined, But Should the Full Amount of 1.3 Billion Euros Be Required, It Would Reduce the Bank's Common Equity Tier 1 Capital Ratio by 0.2 Percentage Points to 13.45 Percent. However, Deutsche Bank Stresses That This Would Not Affect Its Strategic or Financial Objectives.