Yamanashi Kyoto Management Says Deutsche Bank and Commerzbank Have Initiated Merger Talks

OSAKA, Japan--()--Financial researchers from Yamanashi Kyoto Management have noted that two of Germany’s biggest banks have entered into discussions into a potential merger that would result in becoming a mega banking institution.

Germany’s largest banking institution and lender Deutsche Bank confirmed on Sunday that it was holding talks with Commerzbank in regards to a potential merger. The German government has a 15 percent holding of Commerzbank.

"In light of arising opportunities, the management board of Deutsche Bank has decided to review strategic options," the company said in a statement. Analysts from Yamanashi Kyoto Management did highlight that it did not imply there was any guarantee of a potential deal.

The new potential merger would make a single lending market, by combining both assets the new company would have $2.2 trillion U.S. Dollars and over 150,000 employees.

In recent years there have been many rumors and market speculation over Deutsche Bank being in talks with other European banks over potential mergers, however, nothing came to light as many European banks have been struggling after the financial crisis.

“Deutsche Bank lack consistency and have had problems with profitability in the last few years especially competing with larger American rivals which have outperformed since the last global financial crisis. A merger will create a fresh slate they can build a foundation from.” Commented Head of Sales & Trading, Matthew Cole from Japanese Asset Management Company, Yamanashi Kyoto Management.

Deutsche Bank had posted its first annual profit last year since 2014, and it had lost a considerable amount which was due to challenging financial markets, its fixed-income trading division faced most of the criticism.

On Sunday Deutsche Bank did comment to say that a potential merger would be on the table as part of improving its ‘growth profile and profitability.’

About Yamanashi Kyoto Management - Our Company provides retail and institutional investment solutions for high net worth individuals, family offices, insurance companies, pension funds as well as non-profit and governmental organizations.

We also have extensive expertise in structuring and executing finance solutions customized to the requirements of medium and large corporations, financial institutions and government bodies.

Contacts

S Razan,
sam.razan@ykmglobal.com,
+81 (0) 6-4560-4440,
www.ykmglobal.com

Contacts

S Razan,
sam.razan@ykmglobal.com,
+81 (0) 6-4560-4440,
www.ykmglobal.com