DB Privat- und Firmenkundenbank AG, the retail and corporate banking arm of Deutsche Bank AG, is merging its building society operations into one unit under the BHW brand, according to a May 14 statement.

The merger of the BHW Bausparkasse AG and the Deutsche Bank Bauspar AG units will create Germany's second-largest privately held building society with combined new business of €17 billion and combined deposits of €125 billion, Deutsche Bank said. The merged entity will have more than 3 million clients and over 3.7 million building savings contracts.

The merger is expected to result in net savings of some €25 million per year. Deutsche Bank has been focused on reducing costs across its franchise in an aim to achieve a turnaround in profitability.