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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.

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