Deutsche Bank is reportedly gearing up for a potential merger with rival Commerzbank by mid-2019. Shares of the German lender slipped nearly 5%.
According to Bloomberg, citing anonymous sources, the deal is being brokered by the German government and would happen if efforts to restructure the bank fell short of targets.
German Finance Minister Peter Altmaier recently said to CNBC, “Deutsche Bank … suffered some setbacks in the past, but it is basically sound and it can recover and so the question is what are the details of such strategy. And as we discussed with the CEO and the board and all the people concerned, I trust in Deutsche Bank and I will lend my political support to Deutsche Bank.”
Meanwhile, CEO Christian Sewing has asked for patience with his current plan, which focuses on cost cuts and efforts to stabilize market share.
Deutsche Bank is set to report its fourth-quarter results on Friday, February 1.