PriyaPatelTLDR: Deutsche Bank CEO Christian Sewing has dismissed rumors of a potential merger with Commerzbank. In an interview with CNBC, Sewing stated that M&A in the banking industry is not a priority and that certain conditions need to be met before considering a merger. Despite reports that the two banks had resumed talks after calling off plans to merge five years ago, Sewing highlighted that increased interest rates and fair value gaps in mortgage books make a merger less likely in the near future.
Deutsche Bank CEO Christian Sewing has dismissed rumors of a potential merger with Commerzbank. In an interview with CNBC, Sewing stated that M&A in the banking industry is not a priority and that certain conditions need to be met before considering a merger. Despite reports that the two banks had resumed talks after calling off plans to merge five years ago, Sewing highlighted that increased interest rates and fair value gaps in mortgage books make a merger less likely in the near future.
The potential merger between Deutsche Bank and Commerzbank, Germany’s largest banks, could create a combined company with roughly $2 trillion in assets. However, uncertainty in the bank sector and a need for the German government to shore up its budget have reignited speculation about a merger. Merging with Commerzbank would allow Deutsche Bank to pivot further away from investment banking earnings, bolstering its longer-term stability.
