subdued A day after the failed merger talks with Commerzbank, Deutsche Bank, expectations for the current financial year. “We expect that our revenues will remain in the year 2019, in Essence, unchanged from the previous year,” said Germany’s largest private Bank (pdf). At the beginning of February, chief Executive, Christian Sewing was aiming for a slight increase.
In the first quarter of 2019, the company with 201 million euros earned, therefore, a good 80 million euros more than in the same period last year. The credit volume in the business with wealthy clients and investment funds amounted to around ten billion euros. The turnover dropped by around nine percent to 6.4 billion euros, caused in particular by a collapse in the share trading.
“Our earnings in the first quarter of the strength of our customer business,” said Sewing. The Bank grew loans and deposits and increased assets under management. “Our discipline on costs helped us lower income in balance. We are on a very good path to reach our cost target of 21.8 billion euros for the year 2019.” Also to its goal to increase the return on equity of more than four per cent, the Bank chief. After the bursting of the merger talks, intends to focus the Bank the information to the now on day-to-day business. In future negotiations on mergers of financial institutions want to be a part of the Bank.
the financial industry – the merger of Commerzbank and Deutsche Bank, After six weeks of Negotiations, the two largest German banks to stop their merger plans. The implementation risks of the merger were greater than the added value. © Photo: Arne Dedert
Commerzbank and Deutsche Bank, broke off talks on a possible merger on Thursday, after about six weeks. As the two houses reported, the respective boards of Directors after a thorough examination of the result, that a merger not a sufficient offers added value implementation risks, restructuring costs and capital requirements are too high. A merger to form a new major Bank would have been able to accompany especially in the overseas operations of domestic corporations and businesses, which would have had according to experts, for the strongly export-dependent German economy is of great importance.
