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Factbox: Deutsche Bank's puzzle pieces for restructuring

FRANKFURT (Reuters) - Deutsche Bank <DBKGn.DE> faces a tough task as it aims to pare its investment banking, dump its Postbank <DPBGn.DE> retail chain and slash costs in a restructuring plan designed to restore profitability.[ID:nL8N0XM0FL]

It will reveal details of the plan on Monday, April 27.

Below are some pieces of the puzzle at the bank's disposal as it strives to simplify its profile.

POSTBANK RETAIL NETWORK

The ubiquitous retail chain serves 14 million clients from 1,100 branches integrated into the postal system. Deutsche bought Postbank for around 6 billion euros ($6.5 billion) in steps starting in 2008 and now holds 94 percent of the firm.

Deutsche wants to cut its stake to below 50 percent, and trade union Verdi has said the sale will take place on the stock market. Speculation is rife, however, that a strategic investor seeking a foothold in Europe’s largest economy will buy a stake.

Postbank could fetch close to 3.6 billion euros ($3.9 billion) if it sold at a multiple of 0.8 times a book value of 4.5 billion euros, according to analysts' calculations. That points to hefty losses unless the bank can find a strategic buyer willing to pay a premium.

DEUTSCHE BANK-BRANDED RETAIL NETWORK

Deutsche’s own-branded retail network, which is run separately from Postbank and has 8.5 million retail clients and 730 branches, is likely to bear the brunt of cost cuts under the new plan, with up to a third of the branches to be closed.

Deutsche will keep the retail chain as part of the group, partly in a concession to ratings agencies, which have said the its funding costs would rise without it, and partly to political concerns that Germany's top bank may lose its high street presence in the country.

German retail banking is highly competitive as listed banks must compete with cooperative and savings banks, which lack the profit motive.

HUA XIA <600015.SS>

Deutsche is considering selling its 20 percent stake in the Chinese bank, valued at about $4.8 billion, to raise cash and has already received at least one offer from a Chinese financial institution, Reuters has reported.

INTERNATIONAL RETAIL

Deutsche Bank runs retail banking operations in half a dozen countries including Italy, Spain and Poland with 830 branches and 5 million customers. The division contributed 753 million euros to the group’s pretax profit in 2014, according to a JP Morgan report. Citibank calculates Deutsche could sell the division for little more than 2.8 billion euros.

INVESTMENT BANK

Analysts estimate that the group could cut the investment bank by up to a quarter, with some expecting it to carve out 150-200 billion euros from the balance sheet to improve its capital ratios.

The bank has already pared business lines, such as its brokerage services in U.S. commercial paper and single-name credit default swaps, to get rid of balance sheet burdens. Getting out of other areas such as long-term repurchase agreements or interest rate swaps could be costly if the bank sells its positions at a loss.

(Reporting by Thomas Atkins; editing by Jane Baird)