Deutsche Bank is set to raise €9 billion (£7 billion) by issuing bonds to finance an expected acquisition spree after Josef Ackermann, the chairman at Germany's largest lender, reiterated his interest in buying Postbank, majority owned by Deutsche Post.

The bank will seek investor approval for the bond issue, which is just below Deutsche's total share capital of €13.5 billion, at its annual meeting on May 29.

Last week Mr Ackermann said that the bank was seeking to boost its retail operations and was still interested in buying Postbank, which apparently was in talks with Commerzbank, Deutsche's rival.

A Deutsche Bank spokesman refused to comment on the bond issue or the lender's acquisition strategy.

It also emerged last week that Deutsche Bank "would look at" Citigroup's German operations, should the US financial giant put the division on the market.

The bank is set to release its first-quarter results tomorrow, when it is expected to reveal a €2.5 billion asset writedown but that its Tier 1 capital, which is the amount of equity and reserves a lender must keep on its balance sheet, will be in line with forecasts at between 8 per cent and 9 per cent.

Over the third and fourth quarters, Deutsche wrote off a total €2 billion.

The bank will mark down the value of leveraged loans, commercial real estate and residential mortgage backed assets, the majority of which are "Alt-A" home loans — US mortgages that are less risky than sub-prime but normally are given to people without credit histories.

The bank is seeking to make cost savings and recently announced a clampdown on expenses, including barring staff from checking into hotels early and expecting financiers to shower and shave at the airport.

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