Plus   Neg

Commerzbank Stock Dips On Withdrawal Of Merger Talks With Deutsche Bank

Shares of Commerzbank AG (CRZBY.PK) were losing around 3 percent in the morning trading in Germany after German banking major Deutsche Bank AG (DB) announced Thursday that the banks decided to discontinue talks for a potential combination. Deutsche Bank also issued its first-quarter outlook, and its shares were gaining around 3 percent.

In a statement, Deutsche Bank noted that its Board has concluded, following careful analysis, that benefits from a merger with Commerzbank would not be sufficient to offset the additional execution risks, restructuring costs and capital requirements associated with such a large-scale integration.

Deutsche Bank said it will continue to review all alternatives to improve long-term profitability and shareholder returns.

German daily Frankfurter Allgemeine Zeitung recently reported that Deutsche Bank's merger plans with Commerzbank were facing growing resistance in recent days.

Regarding its trading, Deutsche Bank said it expects first-quarter income before income taxes to be approximately 290 million euros, and net income to be approximately 200 million euros. Total net revenues are expected to be 6.4 billion euros, including 3.3 billion euros in the Corporate & Investment Bank.

The Common Equity Tier 1 ratio at the end of the quarter is expected to be approximately 13.7 percent.

Deutsche Bank will report first quarter results on April 26.

In Germany, Commerzbank shares were trading at 7.58 euros, down 2.85 percent, while, Deutsche Bank shares were trading at 7.82 euros, up 2.99 percent.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
NetApp Inc. (NTAP) Wednesday reported a fourth-quarter profit that fell short of Wall Street estimates, as revenues slipped 3 percent. Shares of the company slipped 6% in extended trading session after its first-quarter outlook was also short of current expectations. Sunnyvale, California-based NetApp... The release of $20 bill featuring Harriet Tubman, an American abolitionist and political activist, has been postponed. The redesign of the $20 bill featuring Tubman will no longer be unveiled in 2020, Treasury Secretary Steven Mnuchin said. The government was planning to unveil the redesigned $20... An analyst at Goldman Sachs Inc. has warned that Apple Inc.'s earnings could drop by 29 percent if China were to retaliate in the trade war against the U.S. with a ban on sales of Apple products in that country. The iPhone maker's China business accounted for 17.6 percent of its total sales in the recent second quarter.
Follow RTT