Deutsche Bank share price PLUMMETS after Commerzbank merger plan leaked

Reports on the possible merger suggested a deal was being brokered by the German government and would happen by the summer if efforts to restructure the bank fell short of targets. A Deutsche Bank spokesman declined to comment on the reports. The German government has made no official statement on the potential merger but speaking at the World Economic Forum in Davos last week, Finance Minister Peter Altmaier said he was willing to lend “political support” to Deutsche Bank in its recovery path.

He said: “Deutsche Bank suffered some setbacks in the past but it is basically sound and it can recover and so the question is what are the details of such strategy.

“And as we discussed with the CEO and the board and all the people concerned, I trust in Deutsche Bank and I will lend my political support to Deutsche Bank.”

The merger reports come just before Deutsche Bank announces its fourth-quarter results on Friday.

In the third quarter of last year it reported a net income of €229m (£200m), well above a predicted €149m (£130m) but still 65 percent below what the bank reported for the same quarter in 2017.

Deutsche Bank has made headlines for all the wrong reasons in the last few years from settlements with the US Department of Justice, to management reshuffles, weak earnings, constant restructuring, merger speculation and steep stock price falls.

Chief Executive Officer Christian Sewing has pleaded for patience with his current plan, which revolves around cost-cutting measures and efforts to stabilise the bank’s market share.

But years of unsuccessful restructurings have left the lender with a slump in revenue it has been unable to reverse.

And although the bank’s largest investors have pledged their support to Mr Sewing, they privately admit they are unhappy with the losses sustained.

source: express.co.uk