Deutsche Bank chief calls for European bank mergers after Commerzbank talks

Profitability has also been hit hard by the wafer-thin margins now available on the bank’s traditional lending activity as the European Central Bank keeps rates ultra-low and continues to pump money into the financial system.

Stock in Germany´s largest lender was trading at roughly a third of their book value on Wednesday.

He singled out Germany saying it has “just too many banks”.

The chief at Deutsche Bank AG John Cryan roundly damped down speculation that the bank may be merging with rival Commerzbank.

The boss of Deutsche Bank has said there should be more cross-border bank mergers in Europe, criticising what he called “scattered regionalism”.

A deal would see the two banks merge their respective consumer units, but for now they have both chose to focus on their internal reorganisation before possibly revisiting a deal, Bloomberg reported, citing a person familiar with the discussions.

The gathering takes place amid speculation over the future of Deutsche Bank, once a powerful worldwide player, after it held talks in August about a tie-up with smaller rival Commerzbank, but decided not to pursue the idea.

Noteably, the Deutsche boss also said that the United Kingdom will remain Europe’s top financial centre over the next decade, according to Deutsche Bank’s chief executive John Cryan, despite fears in the City that the vote to leave the European Union could be ruinous for the industry.

“The regulatory trend at the moment is moving in the direction of shrinking rather than growing banks”, he said.

Commerzbank rose around 4 percent, making it the top gainer in the STOXX 600, after Germany’s Manager Magazin reported in its online edition that Deutsche Bank had in the past considered the idea of a merger with Commerzbank.

Both Cryan and Commerzbank chief Martin Zielke, speaking at the same conference, said Germany was burdened by too many banks.

German banks have nearly exclusively focused on earning money from charging a margin on the difference between short-term borrowing and long-term lending, using the revenue to subsidize retail and payments operations that were low-priced and often free for customers.

“Deutsche is a very juicy takeover target”, said Neil Wilson, analyst at ETX Capital.

You have left for this month.