Deutsche Bank ready for industry consolidation: Deputy CEO
Duesseldorf: Deutsche Bank sees a need for the banking industry to consolidate further and sees Germany’s flagship lender well positioned for that development, deputy Chief Executive Marcus Schenck said.
“Consolidation in Europe will come, that is inevitable,” he said at an event in Duesseldorf on Friday. “We are ready for it.”
Deutsche Bank, which has bought German peers Postbank and Sal. Oppenheim over the last decade, has also held talks with Commerzbank over a potential merger in 2016.
At the time, the two lenders have shelved the project as they wanted to complete their restructuring efforts before taking any steps in the direction of a merger.
“We have cleared almost all of our legacy issues and are now better positioned than in the past”, Schenck said on Friday, adding that Deutsche Bank has regained its strength and ability to grow.
Schenck added that the importance of investment banking activities will grow across the industry in the future.
At Deutsche Bank, that unit proved a drag in the last quarter and the lender last week flagged a 22 percent slump of its trading revenues, lagging behind peers.
Combined with a negative impact from a U.S. tax overhaul that prompted Deutsche Bank to guide investors to expect a third-consecutive annual loss in its 2017 results.