The Management Board Of Deutsche Bank confirms that it is in talks with Commerzbank as part of its strategic review.
Amidst media reports that the two banks are in close discussions, Deutsche Bank on Sunday confirmed their discussions in a press release.
The German lender said it has decided to review its strategic options, which led to the discussions. However, it highlighted that there is no certainty that any transaction will occur.
«Experience has shown that there may be a lot of potential economic and technical factors that could hinder or prevent such a step,» said Christian Sewing, chief executive at Deutsche Bank in an internal memo to staff.
Assessing Its Role In European Banking Sector
Deutsche Bank is weighing the consolidation in the German and European banking sector.
«We have to assess how we want to play a part in shaping it. Our stated aim remains to be a global bank with a strong capital markets business – based on a leading position in our home market in Germany and in Europe, and with a global network,» added Sewing.
Focused On Improving Profitability
Against the backdrop of slower economic growth in Europe and its biggest economy, observers said that both banks could struggle to reach their financial goals for 2019.
Added to the recent setbacks at both banks, German media reports indicated that the urgency for such a move has increased.
