Deutsche Bank cuts revenue outlook after merger talks collapse
Deutsche Bank cut its outlook for full-year revenue after suffering its ninth-straight quarter of contraction, underscoring the need to put Europe's largest investment bank on a stronger footing following the collapse of merger talks with Commerzbank.
The bank said it expects business to be flat this year, after previously predicting a slight increase. Income from buying and selling securities fell 19pc in the first quarter, worse than the average drop of 14pc at its US competitors, handing the investment banking division its weakest first quarter since the financial crisis.
Last Thursday Deutsche Bank ended more than five weeks of talks about a historic tie-up with Commerzbank, saying such a deal would be too difficult to execute and wouldn't justify the restructuring costs and additional capital requirements.
The decision leaves Europe's once dominant financial institution to come up with other options to boost profitability and revenue, while opening the door for European competitors to court Commerzbank.
Deutsche CEO Christian Sewing on Friday declined to comment on the options he's considering for the bank, insisting he won't entertain further large cuts to its operations in the US and Asia.
Sunday Indo Business