DAR AL HARB/ISLAM - GERMANY/IRAN: DEUTSCHE BANK DIVESTS FROM ITS .1% REVENUE STREAM RESULTING FROM ITS DEALINGS WITH IRAN

Deutsche Bank Ditches Iran

Pretty soon the few businessmen and government officials in Iran that use Deutsche Bank in their oil export deals will learn that the German bank no longer works with them. Deutsche Bank confirmed to Forbes.com Tuesday that it was pulling out of Iran, a country where it derives just 0.1% of its revenue, because it didn't make business sense to stay.

The bank said regulations imposed by the United Nations and the European Union led to an increased workload and limited business opportunities. "We have sent a letter to private clients in Iran who have an account with Deutsche Bank (nyse: DB - news - people ) in Germany, and told them that we have to terminate our business relationship with them," said Deutsche Bank spokesman Ronald Weichert.

Iran might be an oil rich nation; it ships some 4 million barrels of crude a day and accounts for 5% of global supply. But one German banking analyst, who did not wish to be named, said Deutsche Bank's interest in the Iranian oil business was negligible. "I think leaving Iran improves the business opportunities [for Deutsche Bank]," he said. "Iran is a small country. It's not worth it to deal with Iran and then lose business in the U.S."

But Global Insight analyst Bryan Plamondon countered that there was still potential for higher revenues if the regulations and monitoring guidelines weren't there. "It is certainly true that foreign banks operating in Iran would be doing far better if it were not for the sanctions and regulations," he said. High oil prices are one of the main drivers of Gross Domestic Product (GDP) in Iran. The country's economy grew more than 5% over the last two years and the International Monetary Fund is forecasting 6% this year if oil prices stay high.

Like its other operations in the surrounding Middle East region, Deutsche Bank focuses on trade finance in Iran, having chosen not to apply for a retail banking license in the country.

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1) Deutsche Bank Ditches Iran